Getting Paid Earned Commissions After Termination

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Getting Paid Earned Commissions After Termination


Most employees would assume that they would get paid for the work that they’ve done on their final day of work or on their regular pay period; however, when it comes to earned commission payments, that is distributed on a completely different schedule. Commission payments can cause a bit of a conflict between employees and their employers, especially after being terminated because some employers may believe that the commission was not fully earned. Commission is determined on an abundance of different factors and can become a little tricky after termination, because some employers may think that their employee didn’t perform to their full extent before termination. In addition, there are commission agreements and state wage laws that are factored in and must be be fulfilled.

Final Commission Payment

If an employee is terminated, the employer is still required to pay the employee for their work. Under no circumstances is the employer free of not paying their former employee. The employer must pay their weekly salary, hourly wage, vacation pay, and commissions, depending on the law of whatever state they are in. In general, the employer is always required to pay their dues to the employee even if the employee quit, was fired, or laid off. If your former employer is giving you a difficult time regarding unpaid commissions, then you need to seek help from a commission dispute attorney. You are not alone and we can get you justice and compensation for your unpaid commissions.

When Must Commissions Be Paid?

When it comes to commissions, they are typically not paid the same day that they are earned. For instance, when it comes to making a sale and earning a commission, the sale is not always finalized on the same day. Therefore, it causes a delay because the sale is technically not considered “final” until the payment on the item is complete. Once the payment on the item is complete, then the deal is considered finalized, and that is when the employee should receive commission for his work. However, there should always be an agreement made between the employer and the employee to set grounds for a thorough understanding of when the commission should be paid and the state law must be implemented into the agreement as well.

Completed Activities for Commission

Often times, there are activities that must be completed prior to receiving commission. There is a good reason as to why commissions are hard-earned benefits, because it takes a lot of work and steps for completion. Therefore, the employee must ensure that he has finished each step of what it takes to earn the commission in a certain timeframe.

Commission Plan

In order for one to secure the commission that he is entitled to, he has to ensure that he has a thoroughly written a commission plan that lists all of the commission activities that were done. Overall, it is always good to have your hard work documented and a commission plan is always a great step, as it will show that you earned all of your commission in case your employer does not want to fully compensate you for your work. This will prove that you have successfully finished your commission-based job.

Commission-Based Laws

When it comes to commission, the labor laws vary from state-to-state. In California, commissions fall under the form of wages, which means that it is a law for commissions to be paid within a specific time period once they are earned. For example, if a commission is earned on an employee’s last day of work, then the commission must be paid within a reasonable amount of time once it has been calculated. However, if a commission has been earned before termination but has yet to be payed, the employer must give the employee the earned commission on his last day within a three days notice prior to quitting or being terminated. In California, it is illegal to postpone an employee’s commission payment until the next pay period.

Speak to a Commission Dispute Attorney

If you have been the victim of unpaid commissions, do not wait any longer. You need to speak to our commission dispute lawyers who will help you every step of the way. We know what it takes to make sure you have been fully compensated for your unpaid commissions. Our experienced commission dispute attorney knows the laws that come into place with these types of cases, and we will not allow your former employer to get away with not giving you your compensation. You are not alone. Feel free to call us any time, and our employee discrimination lawyers will be more than happy to help you during this difficult time.
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