Commission based compensation is treated like any other employment wages in California, which means it is illegal for an employer to withhold commission payment that you have earned. As a general rule, your employer is required to pay you a commission if you substantially complete the necessary work to earn the compensation. This is true even if you are no longer employed by the company.

If your employer doesn’t pay all of your earned commission when you quit or are terminated, then in addition to any unpaid commissions, your employer may have to pay you “waiting time penalties.” These penalties are 1-day’s wage for every day your employer delays in paying you your regular salary, up to a maximum of 30-days.

California law also requires employers of commissioned employees to put in writing its commission plan, including the method by which the commissions are calculated and paid. If you are a commissioned employee and your employer hasn’t provided you with a detailed written commission plan, you are vulnerable to arbitrary and unfair calculation of the amount of your commission payments, or, worse, the withholding of all of your commission payments.

Rudy Exelrod Zieff & Lowe has successfully represented employees who were unfairly and illegally denied their rightfully earned commissions. We help our clients navigate this all too common employer practice, litigating against startups as well as the largest companies in California. We have recovered millions of dollars in unpaid commissions for our clients, including $717,000 for three account representatives at a tech firm, and numerous high six-figure awards for sales executives.

If you have questions about your commission payments or any other issues related to your wages or bonuses, please contact one of our attorneys.