You Quit Your Job. Your Employer Won’t Pay Your Commissions.

Now What?

Many sales employees live by their commissions. But what happens if you leave your job, and your employer withholds commissions you’ve earned? It happens more often than it should, and it’s unlawful.

Are Employers Ever Allowed To Withhold Your Commissions?  

Generally speaking, your employer should not withhold your commissions—either while you’re employed or after you leave.

In Pennsylvania, the Pennsylvania Wage Payment and Collection Law protects workers’ rights to unpaid wages. Under this law, when you leave your job, your employer is required to pay you all wages and compensation due and owing no later than your next normal payday.

If you and your employer disagree on how much is owed, your employer must send you a written notice of the amount they believe they owe you—and pay that amount within that timeframe.

If you accept this payment, it does not mean you agree that they don’t have to pay the rest. You can still take your employer to court to compel them to pay the disputed amount.

If your employer withholds your wages for 30 days beyond your regular payday, you may be entitled to additional damages—25% of the total amount owed or $500, whichever is greater.

Check Your Employment Contract

If you have a job that’s paid either partially or fully by commission, there should be language in your offer letter, employment contract, employee handbook, and/or your compensation plan that addresses how those commissions are earned and paid.

Not all of these terms hold up in court, and they’re strongly affected by the rules in your state. But depending on the issue, you may have a stronger case if your employer is withholding commissions in direct conflict with the rules in your contract or handbook.

What Should You Do if Your Employer Won’t Pay Your Commissions?

You’ll need documentation to prove in court that your employer is unlawfully refusing to pay what you’re owed.

If you’re considering leaving your job, it’s a good idea to hold on to your employment contract, employee handbook, compensation plan, offer letter, and any communications you’ve had with your employer regarding your commission payments.

This should help strengthen your case if they try to withhold your commissions. 

Speak To a Knowledgeable Employment Lawyer Today

If your employer is withholding commissions that you’ve earned, you should call a qualified employment attorney. Your attorney can assess the situation, determine what you’re owed, and make sure you recover all wages and compensation owed.

Call us at 267-273-1054 or email us at murphy@phillyemploymentlawyer.com for a free, confidential consultation today. 

The information provided here does not constitute legal advice. It is intended for general purposes only. If you have questions about a specific legal issue, you should speak to an attorney.