UNPAID COMMISSIONS
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Has your employer refused to pay you commissions that you have earned?
Unpaid commissions may be recoverable under the Labor Code, and/or under a breach of contract theory. The employment contract may be oral or in writing. Commissions may be considered wages, and are recoverable so long as you can show that your wages have been earned. If you can demonstrate that your commissions are actually wages, additional compensation such as interest or penalties may also apply.
These types of unpaid commission cases can be complex. SueMyCompany.com provides guidance and resources for workers to understand these issues and explore their options.
In addition to supporting employees in Orange County, CA, SueMyCompany.com provides guidance for workers all over California including Ventura, San Diego, Riverside, San Bernardino, Orange County, and Los Angeles counties. Check your situation today with our free, no-obligation review available 24 hours a day.
How to Calculate Owed Commissions
Calculating unpaid commissions often requires reviewing multiple records, including:
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Commission agreements or offer letters
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Sales reports and performance metrics
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Payment schedules and prior commission statements
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Customer invoices or completed transactions
An attorney can help reconstruct missing data and determine the full amount owed, including interest and penalties.
Common Employer Tactics to Avoid Commission Payments
Employers may use improper tactics to avoid paying commissions, such as:
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Claiming commissions were not “earned” yet
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Changing commission plans retroactively
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Delaying payment beyond a reasonable timeframe
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Withholding commissions after termination
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Misclassifying employees as independent contractors
Frequently Asked Questions
Are commissions considered wages in California?
Yes. Earned commissions are legally classified as wages and must be paid.
Can my employer withhold commissions if I quit or was fired?
No. Termination does not eliminate the right to earned commissions.
Is a written commission agreement required?
Yes. California law requires commission plans to be in writing, but lack of one does not excuse nonpayment.
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