Unpaid Commission

Sales can be a challenging, stressful career with typical compensation packages including either partial or full commission pay structures. Knowledgeable, goal-oriented salespeople can have a significant impact on their company’s bottom line and in turn, earn substantial commissions through their outstanding performances.

But in too many cases, hard-working, successful salespeople meet or exceed expectations yet are not compensated with the commissions they have rightfully earned. Employers will often find a “legitimate reason” to not pay a commission, to pay only partial commission on a sale or to “split” a commission with another salesperson or a manager. It’s also far too common for an employer to not pay a commission or commissions once a salesperson has decided to leave the company or is terminated.

In any case, these hard-working and skilled professionals earned a commission and are therefore entitled to compensation.

Fortunately, in many states – including Missouri and Illinois – commissions are for the most part considered wages under state law. Even in cases in which a salesperson decides to leave a company or is terminated, that salesperson is legally entitled to compensation including commissions earned up to and including their last day of employment. In addition, a salesperson who is not paid and who has to seek legal remedies to recover payment may also be entitled to recover court costs as well as attorney’s fees.

Laws surrounding commission compensation can seem complex, and too often employers will take advantage of that seeming complexity to deny paying the commissions they owe.