Employees in a wide variety of industries work on commission, only earning money when they make a sale. While this type of wage is somewhat atypical, employees who earn commissions are entitled to their wages the same as anyone else. But what exactly are your legal rights when it comes to working on commission, and what happens if your employer fails to pay what they owe?
What Does it Mean to Work on Commission?
When you work on commission, that means that you have an employment agreement where your wages are tied directly to the amount of sales you make. This sort of arrangement is common in things like car sales, insurance, and real estate, among other things. In theory, working on commission is meant to incentivize working harder, but it can also make income more inconsistent and unreliable, depending on your circumstances.
What Are Your Rights When You Work on Commission?
Employees who work on commission have a number of legal rights, in addition to the ordinary protections that most employees receive. This includes the right to have their commission schedule in writing, including a description of how and when they will be paid. They are also entitled to have their wages paid in a timely fashion, and they are entitled to payment equivalent to a minimum wage even if they have not earned enough commissions to meet that minimum.
How Might Your Rights Be Violated?
There are many ways your rights may be violated by your employer when you work on commission. These, include, but are not limited to:
- Your commissions are not paid on time
- Your employer withholds your commissions without a legitimate reason
- Your employer fudges the calculations on commission payouts
- Your employer changes the rules on earned commissions retroactively
- Your employer refuses to pay out earned commissions after terminating employment
- Your employer fails to pay you the equivalent of a minimum wage
What Should You Do?
If you work on commission and your employer has violated your rights, you may have legal options available to you. That is why you need to speak to a lawyer with experience handling employment law matters. The sooner you call, the sooner they can get to work on your behalf.
Steven Mitchell Sack, the Employee’s Lawyer, is a New York employment lawyer with more than 46 years’ experience handling the many aspects of employment law. His new book, “Fired!: Protect Your Rights & FIGHT BACK If You’re Terminated, Laid Off, Downsized, Restructured, Forced to Resign or Quit,” is available in hardback, and contains valuable advice on dealing with employment and labor law issues. To purchase the book, feel free to contact Steven Sack at 917-371-8000 or visit the website at legalstratpub.com. To inquire about a legal matter, please feel free to contact attorney Steven Sack at 917-371-8000 or stevensackatty@hotmail.com.
