According to the U.S. Department of Labor (DOL), commissions are money paid to workers after completing work tasks like product sales. While The Fair Labor Standards Act (FLSA) does not require employers to pay commissions, workers who earned the sale deserve to receive earned commissions. These earned commissions can be considered wages of employees that earned them.
Sadly, many employers don’t pay their employees the commissions due to them. If you did not receive the commissions you’re entitled to, you can feel frustrated and cheated, but you don’t have to accept it as it is.
There are laws and legal protections in place to protect your rights regarding commission payments in many jurisdictions. These laws also outline specific regulations and timelines for payment.
According to Los Angeles unpaid commissions lawyer James Park, employers cannot withhold commissions or any other type of compensation just because you quit, and neither can they withhold compensation after firing you.
Let’s look at what you can do when you don’t get paid the right commissions:
Understanding Unpaid Commissions
There could be various reasons behind unpaid commissions, such as a mistake in the payment process, a dispute over the amount owed, or even intentional withholding by your employer.
To address this issue, you need to review your commission agreement or contract. This document should outline the terms and conditions regarding your commissions, including the payment schedule and any applicable conditions for earning them.
Once you have a clear understanding of your rights and obligations, you can approach your employer or the appropriate department to inquire about the unpaid commissions. You have to remain professional and provide any necessary documentation or evidence to support your claim.
If your employer refuses to cooperate or resolve the issue, you may need to consider taking legal action. Consulting with an employment attorney who specializes in commission disputes can provide you with guidance on the legal process and the steps involved in holding your employer accountable for unpaid commissions.
Identifying Your Legal Rights
As mentioned, to be able to identify your legal rights regarding unpaid commissions, you need to look at your commission agreement or contract. These documents serve as the foundation of your working relationship with the company and outline the terms and conditions for receiving commissions.
Review these agreements carefully to understand your entitlements, including the commission structure, payment terms, and any conditions or contingencies that may affect your right to receive commissions.
Aside from your commission agreement or contract, you should also familiarize yourself with relevant employment laws and regulations. These laws vary from jurisdiction to jurisdiction, so find out your rights within your specific legal framework.
Research your state or country’s labor laws to determine if there are any specific provisions related to commission payments, such as minimum commission percentages, deadlines for payment, or any legal remedies available to you in case of non-payment.
If you’re unsure about your legal rights or have concerns about unpaid commissions, it may be beneficial to seek legal advice from an employment attorney or consult with a labor board or agency. Be proactive in protecting your rights and advocating for fair compensation by finding a competent lawyer who can explain what your options are.
Documenting Unpaid Commissions
Gather all relevant documentation and evidence of the unpaid commissions. This step is crucial in building a strong case and establishing your claim.
Start by locating any written agreements, contracts, or commission plans that outline the terms and conditions of your commission structure. These documents will serve as the foundation of your case, as they clearly define the obligations and responsibilities of both parties involved.
Collect any emails, memos, or other written communications that discuss your commissions, including any promises or acknowledgments of unpaid amounts. These written correspondences can be valuable evidence to support your claim.
Not just the written documentation; you have to gather any other relevant evidence that can demonstrate the amount of unpaid commissions. This may include sales reports, invoices, or other financial records that show the sales you made and the amount of commission owed to you.
It’s also helpful to keep track of any attempts made to collect the unpaid commissions, such as emails or letters sent to your employer requesting payment.
When gathering documentation and evidence, organize them in a logical and easily accessible manner. This will help you present a clear and persuasive case to your attorney or in court, if necessary.
Pursuing Legal Remedies
Now that you have gathered all the necessary documentation and evidence, it’s time to explore your options for pursuing legal remedies for unpaid commissions. Taking legal action can be an effective way to assert your rights and seek the compensation you deserve. There are several routes you can take to pursue these remedies.
The first option is to file a complaint with the labor department or the relevant agency in your jurisdiction. They can investigate your case and mediate a resolution between you and your employer. This route is often recommended as it’s less formal and can lead to a faster resolution.
f mediation fails or isn’t available, you may consider filing a lawsuit against your employer. This involves hiring an attorney and taking your case to court. Keep in mind that litigation can be a lengthy and costly process, so weigh the potential benefits against the risks.
Another option is to pursue arbitration, if it’s included in your employment contract or agreement. Arbitration is similar to a court trial but is conducted by a neutral third party. The decision reached through arbitration is binding, and you may be able to recover your unpaid commissions.
Before proceeding with any legal action, it’s advisable to consult with an experienced employment attorney who specializes in unpaid commission cases. They can evaluate the strength of your case and help you choose the most appropriate course of action.
Seeking Professional Legal Assistance
Dealing with unpaid commissions can be challenging, but having a knowledgeable and experienced lawyer by your side can make a significant difference in the outcome of your case.
A legal expert in employment law will have a deep understanding of applicable laws and regulations related to commissions and compensation. He or she can assess the specific circumstances surrounding your unpaid commissions and provide you with the guidance and advice you need to navigate the legal process effectively.
When you engage the services of a lawyer, you will have someone who will review your employment contract, commission agreement, and any relevant documentation to determine the strength of your case. Your lawyer will also gather evidence, such as emails, sales records, and commission statements, to support your claim.
A lawyer can guide you through each step of the process, ensuring that you meet all necessary deadlines and requirements.
Conclusion
Understanding your legal rights when it comes to unpaid commissions is necessary. Thoroughly documenting any instances of unpaid commissions strengthens your position when pursuing legal remedies.
Hire a lawyer who can help you assert your rights and take the necessary steps to pursue the compensation rightfully owed to you.