Legal Question in Employment Law in Massachusetts
Compensation for Work Completed
I worked for a mortgage company for which I closed and funded loans for the month of July. Commissions are set to be received at the end of the following month. I ended my employment in August after the loans were already funded and was told by the manager that I would receive pay for the July loans but not those which I left in August. Company is now refusing to pay my commissions to me stating I did not work the entire month following my commission month of July. This work was already completed, and the company got paid on it, can they keep these commissions from me? If I stayed through August and closed loans, I would have been paid for July but not August and they would have kept all that income. No matter when you leave, they are not going to pay you for work completed. Is this legal?
1 Answer from Attorneys
Re: Compensation for Work Completed
As you have described it, the answer is "no, this is not legal." The general rule is that, if you have done everything necessary to earn the commission, they cannot refuse to pay even if you have left the company. The rule *MAY* be different for some discretionary bonuses, but as far as commissions are concerned, they need to pay you for this work.
Evan