As lawyers for the workers, we make sure that employers pay you for the long hours you put in and give you the wages you are owed.
Employees who work on commission, whether partially or entirely, are incentivized to continuously succeed in their jobs in order to secure earnings. When employers fail to pay those earnings, workers can fight back.
At Josephson Dunlap, we represent clients nationwide in unpaid commission claims against employers who delay, deny, or underpay rightfully earned commissions. Our attorneys have a working knowledge of federal and state laws governing commissioned employees and their rights and regularly handle commission disputes on behalf of workers across a broad range of industries. We are driven by a singular goal: to help employees secure the rightful earnings they deserve. Learn how our team can help you with your claim today.
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A commission is a fee paid to an individual or company for providing services related to promoting or selling goods and services. It can be expressed as a flat-rate fee or as a percentage of the sales amount. Commission structures vary by industry and job position, with some requiring no payment at all. Many different types of workers may earn commissions. Some are paid solely on commission, whereas others earn commissions in addition to a regular wage.
Some of the most common types of workers who receive commissions include:
- Real estate agents
- Insurance agents
- Investment advisors
- Financial advisors
- Fashion designers
- Car salespeople
- Freelance writers
- Independent contractors
- Clothing store salespeople
- Technology salespeople
- Service technicians
Commissions are generally regulated by state law, rather than the federal statute. As such, employers and contractors must follow all applicable commission laws in the state in which they operate. When they fail to do so, commissioned workers can take legal action to seek backpay and other damages.
What Happens If a Company Doesn’t Pay Commission?
If a company or employer fails to pay a contracted or agreed-upon commission that an employee or independent contractor has rightfully earned, the commissioned worker has the right to pursue legal action. By filing a lawsuit against your employer or past employer, you can seek compensation for unpaid commissions, backpay, and other damages associated with your unpaid earnings, such as pain and suffering or emotional distress.
If a company or employer has failed to pay you earned commissions, you should take the following steps:
- Calculate your earned commissions and document them in writing
- Contact the company in writing to explain the situation
- Keep copies of all communication between yourself and the company regarding unpaid, underpaid, or delayed commission payments
- Gather all of your evidence, such as contracts, emails, or any other written agreements related to commission payments
- File a complaint with the state’s department of labor or other applicable government agency
- Contact an unpaid commissions attorney to represent you in any negotiations with the company and, if necessary, file a civil lawsuit
It is important that you work with an experienced legal team, like the one at Josephson Dunlap. These cases can quickly become very complex; you need someone by your side who understands the law and knows how to protect your rights.
With more than two decades of experience and hundreds of millions of dollars recovered in unpaid wages, our attorneys have what it takes to aggressively advocate for you. Our firm has a nationwide presence and is widely recognized as an authority in wage and hour laws. We proudly represent all types of commissioned workers across a broad range of industries; learn how Josephson Dunlap can help you with your unpaid commissions claim today.
How Employers Wrongfully Withhold or Underpay Commissions
Employers and contractors may utilize various tactics to wrongfully withhold, delay, underpay, or simply not pay earned commissions.
Some examples include:
- Failing to provide clear written commissions agreements
- Not compensating for additional services rendered
- Requiring impractically high sales targets
- Refusing to fully pay commissions earned
- Unjustly withholding payments based on arbitrary criteria
- Terminating contracts without reason and refusing to make payment
- Making deductions from commission payments without consent
- Making unlawful deductions from commission payments
- Unilaterally changing commission terms without an employee’s agreement
- Paying less than the agreed-upon rate
- Requiring employees to work for no pay to qualify for commissions
If you are involved in any type of commissions dispute with a current or former employer, reach out to the unpaid commissions attorneys at Josephson Dunlap. We can help you take the necessary steps to hold your employer accountable for the commissions you have earned.
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