Unpaid Sales Commissions: What The Law Says
If you're paid on commission and your employer withheld, delayed, or shorted what you earned, you may have the right to recover it, even after you've left the job.
WORKERS REPRESENTED NATIONWIDE
IN WAGES RECOVERED
CONSULTATION FEE
What Is a Commission?
A commission is pay for successfully selling or helping sell goods or services. It may be a flat fee or a percentage of the sale. Commission structures vary a lot by industry, employer, and role. Some workers are paid entirely on commission. Others get commissions on top of a base salary or hourly wage. If you're paid on commission, your income depends directly on your performance. When an employer withholds those earnings, you have the right to take action.
Commissions are generally regulated by state law, not federal law. Employers must follow whatever commission rules apply in the state where they operate. When they don't, commissioned workers can take legal action to recover what they're owed, along with other damages in some cases.
Salespeople
Real Estate Agents
Insurance Agents
Brokers
Financial Advisors
Recruiters
Delivery Drivers
Service Technicians
What Happens If You're Let Go Before a Sale Closes?
What happens if you're let go before a sale you worked on actually closes? This is where a legal principle called the procuring cause doctrine often comes into play. Under this doctrine, a salesperson who sets a sale in motion, meaning they found the customer and did the work to bring the deal together, may still be entitled to a commission even if they're terminated before the sale is finalized.
In 2022, the Texas Supreme Court took up this exact issue in Perthuis v. Baylor Miraca Genetics Laboratories, LLC. A sales executive spent months negotiating a large account. The day before the contract was signed, his employer fired him. The company then refused to pay any commission on the deal. The Texas Supreme Court sided with the employee. It held that the procuring cause doctrine applies whenever a commission agreement is silent on what happens after termination. In plain terms, if your agreement doesn't clearly say otherwise, you may still be owed a commission on a sale you set in motion, even after you're gone.
This doctrine isn't unique to Texas. Courts in many other states recognize a similar rule, though the exact details can vary. What matters most is what your commission agreement actually says. If there's nothing in writing about post-termination commissions, the default rule often favors the salesperson who did the work.
What This Means For You
If you were let go, laid off, or resigned before a sale you worked hard to bring in was finalized, that alone does not mean that you are not owed any commission. You should review your agreement or ask a qualified attorney rather than assuming the commission is lost.
What Happens If A Company Doesn't Pay A Commission?
When a company fails to pay a commission that was promised, you have the right to take legal action. This applies whether the promise was in a contract, a pay plan, or another agreed arrangement. You may be entitled to recover unpaid commissions and back pay. In some cases, you can also recover additional damages tied to the unpaid earnings.
Commission cases can get complicated fast. Verbal agreements, shifting sales targets, and vague contract language all make disputes harder to sort out. That's exactly why it helps to work with a legal team that knows this area of the law well.
What to Do If You Haven't Been Paid
How Employers Wrongfully Withhold Commissions
Employers sometimes use a range of tactics to wrongfully withhold, delay, or underpay commissions that were rightfully earned:
Failing to provide a clear, written commission agreement.
Requiring impractically high sales targets.
Refusing to fully pay commissions earned.
Withholding payments based on arbitrary criteria.
Terminating without reason and refusing payment.
Making unlawful deductions from commission payments.
Changing commission terms without agreement.
Paying less than the agreed-upon rate.
Frequently Asked Questions
There is no cost. We offer free and confidential case reviews to help you understand your options. We do not charge any upfront legal fees. We only receive attorney fees if we win a financial recovery for you.
Getting started is straightforward. You can fill out our secure online form or call our office directly. A case manager will review your job details, look for qualifying wage violations, and let you know whether you may have a claim. This initial review is free and takes only a few minutes.
Federal and state laws prohibit employers from punishing or terminating workers for reporting wage violations or participating in a legal claim. This type of unfair treatment is called retaliation, and it is illegal. If your employer takes adverse action against you, our firm can advise you on your rights.
No. Your initial consultation with our firm is private and confidential. We will not contact your employer or notify them that you spoke with us. You can check your eligibility and learn about your rights without your employer's knowledge.
Related Wage & Hour Claims
We handle a wide range of wage and hour disputes, beyond unpaid commissions, including:
Arbitration Agreements
Meal & Rest Break Violations
Time Shaving
Unpaid Training
Minimum Wage Violations
Employee Misclassification
Unpaid Commissions
Untimely Wage Payments
Employer Tip-Theft
Off-the-Clock Work
Unpaid Overtime
How Our Wage Recovery Process Works
Start your free, no-risk case review in about 10 minutes.
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Tell us about your missing pay through our confidential online form. We will review your details and follow up within 24 hours. Need answers right away? Call (888) 992-2990.
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A case manager will spend about 10 minutes reviewing your situation, looking for qualifying violations like unpaid overtime, off-the-clock work, or regular rate errors. Clear advice, no obligation.
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If you have a valid claim, we get to work right away. Our team handles the paperwork, gathers the evidence, and builds a legal strategy suited to your situation.
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Once we have the facts, our legal team pursues the full amount you are owed. You receive updates throughout the process and pay nothing out of pocket. Attorney fees are collected only if we win.
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