Can your employer refuse to pay commissions after you leave the company?
Not simply because you were fired or resigned. If a commission was already earned under the applicable compensation plan, agreement, and wage law, termination does not automatically erase it.
The difficult question is usually when the commission became earned.
Jurisdiction note: Commission disputes can involve wage-payment statutes, contracts, sales-compensation plans, bonus rules, deductions, minimum wage, overtime, and retaliation. The plan language and earning event are critical.
What to gather before calculating unpaid commissions
- Commission plan and amendments;
- Offer letter;
- Sales reports and CRM records lawfully available to you;
- Customer contracts or closing records you may lawfully retain;
- Pay statements;
- Chargeback policies;
- Termination or resignation date; and
- Messages explaining why payment was withheld.
The key question is when the commission was earned
Commission plans may use different triggering events: customer signature, employer acceptance, shipment, closing, customer payment, or expiration of a cancellation period. The payment date and earning date are not always the same.
New Jersey commission rights after termination
New Jersey’s Wage Payment Law defines wages to include direct monetary compensation for services when the amount is determined on a commission basis. It also generally requires final wages by the regular payday for the pay period in which employment ended.
For employees compensated through an incentive system, New Jersey law allows a reasonable approximation of wages due until the exact amount can be computed.
Pennsylvania commission rights under the WPCL
Pennsylvania’s Wage Payment and Collection Law defines wages broadly to include earnings calculated on a commission basis and generally enforces the employee’s contractual right to compensation. Earned wages or compensation are generally due no later than the next regular payday on which they otherwise would have been paid.
Common commission disputes
“You were terminated before the customer paid”
Review whether customer payment was a condition of earning the commission or only a payment trigger.
“You must be employed on the payment date”
Some plans contain active-employment conditions. Their effect depends on the plan, state law, and whether the compensation was already earned.
“The customer cancelled”
Review cancellation and chargeback terms and whether the rule was applied consistently.
“Another salesperson closed the deal”
Review account-assignment rules, split commissions, sales-stage requirements, and prior treatment.
How to document an unpaid commission claim
- Commission plan;
- Offer letter;
- Pay stubs;
- Prior commission statements;
- Sales milestones;
- CRM records you may lawfully possess;
- Customer-payment dates;
- Chargebacks;
- Termination messages; and
- Your transaction-by-transaction calculation.
Can commissions affect overtime?
Yes. Some commissions may have to be included in the regular rate when calculating overtime. Commission pay does not automatically make an employee exempt.
See Swartz Swidler’s unpaid overtime page.
Practical steps if commissions were not paid
- Get the plan.
- Build a transaction list.
- Compare past practice.
- Ask for the calculation in writing.
- Preserve deadlines.
Frequently asked questions
Can my employer keep my commissions because I was fired?
Not automatically. The key issue is whether the commission was earned under the compensation agreement and applicable wage law.
What if I resigned before the customer paid?
Review whether customer payment was a condition of earning or merely the payment trigger.
Can the plan require me to be employed on payday?
Some plans use active-employment conditions. Their effect depends on the plan and state law.
When are final commissions due in New Jersey?
Wages due are generally payable by the regular payday for the pay period in which employment ended; incentive pay may involve a reasonable approximation until exact calculation.
When are final commissions due in Pennsylvania?
Earned wages or compensation are generally due no later than the next regular payday on which they otherwise would have been paid.
Can commissions count toward overtime?
Some commissions affect the regular-rate calculation for overtime.
What if I never received the written commission plan?
Preserve offer letters, pay statements, emails, historical calculations, and evidence of actual practice.
Can I file a wage complaint for commissions?
Potentially. NJDOL and Pennsylvania L&I administer wage-payment complaint processes, and private claims may also be available.
Related Swartz resources
Talk with Swartz Swidler about unpaid commissions
If your former employer says you forfeited commissions because you were fired, resigned, or were not employed on the payment date, the commission plan and wage law should be reviewed together.
