Earned Commissions and Bonuses

It is illegal in California for an employer to fail to pay its employee bonuses and commissions earned even if the employee has left the company after earning the commission of bonus. However, this may not be true if the employee is paid the commission in part for a continuing service obligation.

Reasonable conditions may be placed upon the right to recover commissions. For instance, it is sometimes permissible to require that the contract upon which the commissions are based is not complete until payment of the contract price to the employer.

Commissions earned on a sale must be paid within the employee's pay period. Withholding payment of earned commissions until the end of a longer period would be a violation of California's Labor Code. Additionally, any earned commissions may not be forfeited. Once a commission is vested, the commissions may not be forfeited as a result of the fact that the employee terminates the employment.

No commissions will be found to be owed an employee where a contract provides that the employee is to receive no commission on accounts where payment is not received until a set number of days (as an example, 30 days) after separation of employment. On the other hand, commissions may be found to have been earned and payable to the employee after separation of employment where the contract terms are overly harsh and the employee lacked meaningful choice in the contract negotiations.

For a free consultation with an experienced employee rights attorney, contact David Spivak:

  • Email David@SpivakLaw.com
  • Call toll free (877) 876-5744
  • Visit The Spivak Law Firm, 16530 Ventura Boulevard Suite 312 Encino, CA 91436
  • Fax (310) 499-4739

For further information on your rights in the work place, please visit our other websites:

Discrimination FightDiscrimination.net
Wrongful termination FightWrongfulTermination.com
Sexual harassment FightSexualHarassment.com
Unpaid wages and overtime MyWorkMyWages.com
Family and medical leave FMLALawyers.com
Pregnancy discrimination PregnancyRights.com
Disability discrimination FightDisabilityDiscrimination.com
Age discrimination FightAgeDiscrimination.com
Employee Rights Blog CaliforniaEmployeeRightsAttorney.

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