Crucial Steps to Take When Dealing with Unpaid Commissions in California

California’s reputation for strong worker protections extends to its labor laws, which guarantee timely payment of all wages, including commissions. Despite such laws, workers may still struggle with unpaid commissions in various ways.

Common scenarios include employers withholding hard-earned commissions for unlawful reasons, making inaccurate calculations, changing commission structures in violation of written agreements, or refusing to properly pay a terminated worker. Workers have the right to take legal action against their employer to recover the unpaid commissions they are owed, along with damages and penalties.

While specific California laws set minimum wage and rates for calculating overtime pay, there are no statewide formulas for determining the commissions a worker should be paid. Commissions vary based on factors like industry, job type, and employer.

Regardless of variations in commission rates, employers are legally obligated to provide commission-earning employees with written agreements. Commission agreements should outline commission rates, calculation methods when the commission is earned and payment schedules. Additionally, earned commissions must be paid within a reasonable timeframe, typically within the same pay period as regular wages. 

Dealing with unpaid commissions can be frustrating. Unfortunately, even when written agreements exist, they can sometimes be ambiguous. California workers who believe their employer owes them unpaid commissions can use the following roadmap to navigate the situation and recover the pay they are owed:

• Gather documentation: Collect all relevant documents, such as your employment contract, commission agreements, pay stubs and any communication with your employer regarding commissions. Such evidence can be helpful if you decide to file a wage claim against your employer.
• Discuss the matter with your employer: A direct conversation can sometimes resolve the issue. In some cases, unpaid commissions may be due to a simple oversight. Approach the conversation professionally, explaining why you believe commissions are owed.
• Seek legal counsel: An experienced employment lawyer can advise you on the possibility of filing a lawsuit to recover your unpaid commissions and represent you throughout the process.

You may be able to file a lawsuit to recover the unpaid commissions. An employment attorney who is knowledgeable about California wage claims can help maximize your chances of a successful outcome. The lawyer can analyze the details of your case and provide tailored legal advice.

Having quality legal representation is vital, especially as unpaid commission claims can get complicated. For example, some workers may not have a written commission agreement, or the document may be vague about how commissions are earned.

There are also specific time limits, known as the statute of limitations, involved with wage claims in California. Because the statute of limitations can vary according to the details of your case, be sure to speak to an employment lawyer to ensure you do not miss any deadlines to recover your unpaid commissions. 

At McCormack Law Firm, we understand that dealing with unpaid commissions can be financially and emotionally draining. Our San Francisco employment lawyers are here to ensure you recover what you are owed. We also represent workers who face retaliation after requesting the payment of earned commissions. Employers are prohibited from retaliating against workers who complain about unpaid wages, including commissions.

McCormack Law Firm will leverage California labor laws to increase your chances of a successful outcome in your unpaid commissions case. We are available to answer your questions. Contact us today for a free consultation.