Can My Employer Withhold Commissions If I Resign or I’m Terminated?

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Can My Employer Withhold Commissions If I Resign or I’m Terminated?

No, your employer cannot withhold commissions under either of these circumstances. If you quit your job, are fired or get laid off, your employer is required to pay you all earned commissions within a set timeframe, as follows:

  • If you are fired, your employer must promptly pay you all commissions upon termination.
  • If you resign with at least 72 hours’ notice, your employer must pay you all your earned wages, including commissions, on your last working day.
  • If you resign without giving notice, your employer has up to 72 hours to provide your final paycheck, which must include all your earned commissions.

If an employer cannot reasonably calculate the worker’s earned commissions at the end of employment, they must be paid as soon as the owed amount can be reasonably calculated. Commissions are considered earned when the employee has performed all the work required to receive them. The terms and conditions under which commissions are earned should be outlined in the employment contract or commission agreement.

If an employer does not pay a worker their earned commissions and other final wages on time, they may be ordered to pay waiting time penalties. Penalties are calculated based on the employee’s daily wage for each day the payment is delayed, for a maximum of 30 days.

If your employer willfully or wrongfully withholds earned commissions, you may file a claim with the California Division of Labor Standards Enforcement. You can also take legal action to recover the unpaid commissions.

Contact the skilled San Francisco employment attorneys at McCormack Law Firm to learn more. We have experience helping workers with all types of unpaid wage claims. Our team can answer your questions and advise you of your legal options for obtaining the commissions you are owed.

Other Unpaid Wage, Overtime and Commissions FAQ:

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