Can an Employer deny you earned sales commissions after firing you? My employer requires current employment with the company to be eligible ...

Question

Can an Employer deny you earned sales commissions after firing you? My employer requires current employment with the company to be eligible to receive commission payments.

Answer

It depends on what the commissions contract says. In California commission agreements must be in writing. It should describe how and when the commissions are earned and whether the employee must be employed at the time the commission is earned. If the contract is silent in this regard, the presumption is the commission cannot be forfeited.

Answer

If the employee has taken all acts necessary to earn the commission, then the commission must ordinarily be paid as part of the employee's final wages. If it was owed as part of final wages and not paid, the employer is liable for penalties under Labor Code Section 203. The claim can be pursued in court or before the California Labor Commissioner.