Ventura Unpaid Commission Claim Attorneys

Serving Ventura County and California 

Claims for unpaid commissions form the heart of what we do at Karakalos Law. That is because unpaid commissions wage claims are so common. These days, more and more employees are paid on a commission basis because employers realize that shifting costs to employees is a good way to increase profits. They often refuse to pay commissions, especially commissions that are large.

California law about commissions is kind of like the Wild West. Unlike the specific laws that require employers to pay overtime wages and set the formula for how to calculate overtime pay, there are no specific laws that set forth the amount of commissions to pay employees.

On the contrary, claims for unpaid commissions arise out of contract law. That means that whatever the parties agree on for the payment of commission wages will form the basis for any plans for nonpayment of those commission wages.

The problem with this approach is that oftentimes employers and employees do not put their commission agreement in writing, or the written contract is ambiguous and can have multiple meanings. The parties will therefore disagree on the terms of their agreement, and whether commissions have been earned or not. (However, a new law dictates that starting on January 1, 2013, all commission agreements must be in writing, but since the statute of limitations may be as long as four years on claims for unpaid commissions, the new law will not resolve this issue quite yet.)

At Karakalos Law, our clients have handled claims for unpaid commissions, both big and small. We are familiar with the process for bringing such claims before the courts of the State of California or how to file wage claims with the California Labor Commissioner. We also know that claims for unpaid commissions can trigger penalties for violation of Labor Code section 203, commonly referred to as waiting-time penalties. Perhaps most importantly, we know what else to look for when our clients come to us with claims for unpaid commissions. When an employer fails to pay commissions, it may trigger minimum wage violations and attendant liquidated damages claims. It may also mean that the employer owes the employees overtime wages and has not provided the employee with adequate paycheck stubs.

For answers to frequently asked questions regarding claims for unpaid commissions, visit our wage claims FAQ section.

Unpaid Commissions Wage Claims 

Unpaid commissions are a very common type of wage claim in California. Employees who earn commissions but are never paid for them may recover the commissions earned in a wage claim. However, California law distinguishes between the many types of commissions, and some “commissions” are not considered wages that can be recovered in a wage claim.

Contact a lawyer for help if you are interested in pursuing an unpaid commissions wage claim.

Commissions Are Wages

In California, commissions are “wages.” That means you can bring a wage claim in court or with the Labor Commissioner to collect unpaid commissions.

The term “commission wages” has been defined in the case of Keyes Motors, Inc. v. DLSE (1988) 197 Cal.App.3d 557; 242 Cal.Rptr. 873, which held that commissions arise from the sale of a product, not the making of a product or the rendering of a service. The court further held that in order to be a commission, the compensation must be a percentage of the price of the product or service which is sold.