If your employer has not paid your commission, review your employment contract or commission agreement to confirm the terms and conditions regarding commission payments. Ensure that you have met all requirements to earn the commission.
Communicate with your employer or HR department in writing, clearly stating the amount owed and referencing the contract terms.
If the issue persists, you can file a formal complaint with your state labor board or employment agency, as unpaid commissions may be considered a violation of wage and hour laws. A Boston employment and labor lawyer can help you take the first steps and guide you through the process.
Understand Commission-Compensation
Commission-based compensation is a payment structure where you earn a portion of your income based on revenue generated for your employer. This system incentivizes employees to meet performance targets, as their earnings are directly tied to their results.
Timely payment of commissions allows employees who rely on this income to manage their finances. When commissions are delayed or unpaid, they can create significant financial strain, disrupt personal budgeting, and lead to dissatisfaction in the workplace.
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Document Everything
Keep a detailed record of all sales and transactions related to your commission. This includes invoices, purchase orders, or any paperwork that shows the sales you’ve made and the amount of commission you are owed. Organized records provide concrete evidence that you have met the performance criteria for earning your commission.
Additionally, document all communications with your employer regarding your commission payments. Keep copies of emails, letters, and even notes from phone calls or in-person conversations that relate to the issue. Clearly note dates and what was discussed to establish a timeline and show that you have attempted to resolve the matter professionally.
In the event of a legal dispute or if you file a complaint with labor authorities, these records can validate your claim and demonstrate that your employer owes you unpaid commissions. Having documentation also strengthens your position in any negotiation or legal action, giving you the leverage needed to recover the funds you’re owed.
Communicate With Your Employer
Before taking formal action, try resolving the issue directly with your employer. Start by having a conversation with your employer or the Human Resources (HR) department. Politely but firmly explain that you have not received the commission you are owed and ask for clarification.
The next step is to send a written request. This should be a formal letter or email that clearly outlines the amount of commission you are owed, along with any relevant details, such as the sales involved and the dates on which the commissions were due.
Reference specific terms from your employment or commission contract, including payment schedules, quotas, or conditions you’ve met to earn the commission. Include a reasonable deadline for payment, and make sure the tone of your correspondence remains professional and respectful.
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File a Complaint With a Government Agency
Most states have labor departments or employment agencies responsible for handling wage disputes, including unpaid commissions. You can typically file a complaint online or in person. Your attorney will help you report unpaid wages in Massachusetts.
Be aware that there are time limits for filing workplace claims, which vary by state. Missing the deadline may prevent you from recovering your unpaid commission. After reviewing your case, an employment and labor attorney can determine exactly how much time you have to file a claim.
Once your complaint is filed, the government agency may launch an investigation into your employer’s practices. If they find your employer has violated wage laws, they may be required to pay back unpaid commissions. The agency may also assist in mediating a settlement between you and your employer.
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Take Legal Action
If your case involves a breach of contract, seek legal representation. Unpaid commissions often violate the terms outlined in your employment or commission agreement.
A lawyer can help you assess whether your employer has breached the contract and advise on the appropriate legal steps to recover the funds you’re owed.
Your employment lawyer can also file a lawsuit for unpaid wages, including commissions. This is a more formal approach, where you may be entitled to recover not only the unpaid amounts but also penalties and interest.
Legal representation adds leverage in negotiations. A lawyer can communicate with your employer or their legal team on your behalf, pushing for a fair settlement and avoiding a trial. They will assess the strength of your case, review Massachusetts labor and employment laws, and advocate for your best interests.
If Your Employer Has Not Paid My Commission, Call an Employment and Labor Lawyer
At Duddy, Goodwin & Pollard, we understand how stressful it can be when your employer refuses to pay your commission. It’s frustrating to put in hard work and not get compensated as agreed. Our experienced team will help you navigate this challenging situation.
Since 2022, when we launched our law firm, we have built a track record of successful case results. We’ll handle the legal complexities so you can focus on moving forward with confidence.
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