Failure to pay commissions

Many employees receive salary in the form of commission. Under New York law, an employer must pay an employee for any commissions earned within a specific time. If you have not been paid within a reasonable amount of time or if your employer has failed to pay you your proper commission, you may have a claim against your employer for unpaid wages and commissions. Laws vary from state to state, so it is advisable to consult with a New York unpaid commission lawyer at Fitapelli & Schaffer to determine whether your commission agreement and your employer’s actions are in compliance with the law.

Under New York law, a commission agreement must be in writing and signed by both the employer and employee. In the absence of a signed written agreement, courts will favor the terms as recollected by the employee over that of the employer.  The commission agreement must state how wages, salary and commissions are calculated; if it provides for a recoverable draw, the frequency of reconciliation; and, in the event of termination or resignation, how wages, salary and commissions will be paid.

Before signing your contract, you should review its terms. In New York, courts generally uphold the express language of the agreement, so it is important to understand what you are signing. While you may feel you are owed commission on a particular sale, it is possible your commission has not yet been “earned” under your agreement.  If you are unclear about any of the provisions of your agreement or are unsure whether you have been properly paid, the commission attorneys at Fitapelli & Schaffer can review your contract and, where proper, bring a lawsuit for unpaid wages on your behalf.  Also, under the New York Labor Law, an employee can bring a claim dating back six years.  Moreover, even though an employee is paid commissions, they are still likely entitled to overtime pay for all hours over 40 per week.