New Jersey Employers Must Pay Final Commissions and Bonuses to MLOs on the Date Required by Law (or may be on the Hook for Paying 2x the Amount Owed)

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New Jersey mortgage loan companies must pay final commissions and bonuses to separated MLOs on the schedule set by the law not the company’s schedule. If they pay the wages late, they may owe the MLO 2x the amount of the final commissions/bonuses under the New Jersey Wage Payment Law. If you have separated from a New Jersey employer within the last 6 years, call us today to determine whether your final wages, including commissions and bonuses, were paid on time.

Do Employees Have Any Protections From Being Laid Off?

When a mortgage loan officer (MLO) concludes their employment, New Jersey law requires employers to pay all earned wages, including commissions and bonuses, on the very next payday rather than according to the timeframe the company usually pays them. Even if the exact amount of a commission or bonus cannot be determined upon an MLO’s separation, the employer must pay a reasonable estimate of the earned incentive wages on the subsequent regular payday until the accurate amount can be computed. (N.J.S.A. § 34:11-4.3). MLOs who experience delayed payment can seek liquidated damages equivalent to 2x the late-paid amount. (N.J.S.A. § 34:11-4.10).

Despite the legal requirements for early payment of final commissions and bonuses, it is common in the mortgage loan industry to follow the same payment schedule applied during employment for separated MLOs. 

Example: An MLO working for a company in New Jersey is terminated on June 1st. According to the MLO’s commission plan, commissions earned in May are payable at the end of June. The next regular payday is June 14th. The company follows the commission plan instead of New Jersey law, which requires it to pay the MLO all due wages by June 14th, the next regular payday. The company pays the MLO’s final commissions totaling $5,000 at the end of June. Accordingly, the MLO may seek $10,000 in liquidated damages (200% of the late-paid wages) from the company on top of the $5,000 paid under New Jersey law.

If you worked as a mortgage loan officer in New Jersey and would like to discuss whether they complied with New Jersey law requirements for the payment of your final commissions and bonuses, please contact us today or complete the form below to request a free and confidential consultation. If we determine that you have a valid claim and you choose to proceed, there will be no out-of-pocket costs or fees. Our firm handles cases on a fully contingent basis and will seek reimbursement for fees and costs only from the recovery obtained. If there is no recovery or judgment in your favor, Swartz Swidler, LLC will not seek any fees or costs from you.

Submit Your Information Below for a Free and Confidential Consultation.  You may also call us at 856-685-7420 or email Justin Swidler, Esq. (