What to Know

Unpaid Commissions - California Laws

Unpaid Commissions. Los Angeles, California.

If you are not paid commissions

Claims for unpaid commissions are common. Whether you're still with the company or not, if your employer hasn't paid your commission, call us at 888-762-0297 to discuss your case.

We do not charge for consultations.

We can help clients resolve their claims for unpaid commissions in Los Angeles and throughout California.

What are unpaid commissions?

A commission is usually money an employer pays to an employee when they complete tasks such as selling a certain amount of goods or services.

Employers violate California law regarding commissions in many ways.

Scenario #1. An employer fails to pay salespeople their commissions or fails to provide a minimum payment to some of their sales employees.

Scenario #2. An employer didn't pay commissions when an employee leaves a company (earned but uncollected commissions.)

Scenario #3. An employer fails to pay earned commissions during a so-called "probationary" period, which is usually the first 6 months.

Who is working on commissions?

Many kinds of workers are paid commissions, including:

Salespeople,

Retail workers,

Service people,

Appliance installers,

Office workers, and many others.

California unpaid commissions laws

The California Code Labor Code and the Fair Labor Standards Act (FLSA) are the primary state and federal statutes governing wages – including commissions.

Problems with unpaid commissions when employment terminated

The problem arises when an employee quits or the employer terminates their employment before paying their commission wages.

Generally, termination does not affect an employee's right to receive a commission where no other action is required to complete the sale leading to the commission payment.

Another problem is that some employment agreements state that the employee must be currently employed by the employer to receive the commission. (Forfeiture provision).

If it sounds familiar, call our office at 888-762-0297.

All California employees, including those who earn commissions, have the right to be paid for their work. They also have the right to be paid on time. And in some cases, they have the right to be paid overtime.

Unpaid commissions when the employer didn't finalize the amount

There are cases when the commission was earned but not yet formally finalized when the employment ends. For example, a customer's payment earning a commission is in the mail but not yet received, or the customer cancels the order or decides to return an item.

In cases like this, the employer must pay commissions at once upon completion of the necessary paperwork.

For more information

If you believe your employer didn't pay commissions and you want to file a claim, call us at 888-762-0297 to discuss your situation. Whether an employee quits a job, is terminated for cause, or is laid off does not impact an employer's obligation to pay the employee in a compliant way with California employment law.

We helped many people to collect their unpaid commissions.

We work on a contingency basis, which means that there are no fees unless we negotiate a settlement or win your trial case. This applies to all unpaid commission lawsuits. We also advance the costs involved, which are reimbursed after a successful recovery for you.

We represent clients in Los Angeles, Sacramento, San Diego, San Bernardino, Santa Clara, San Francisco, San Jose, Oakland, Orange County, and Northern and Southern California.

Last updated on July 26, 2021.

Related Articles

• Unpaid wages in California

• Unpaid Overtime in Los Angeles and California

Additional Resources

• Unpaid commissions and California Labor Code 204.1 LC.

• California Labor Code 201a LC.

• California Labor Code 2750 LC.