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California Employment Law Glossary

Commission Pay Disputes
Wage & Hour

 

Definition


 

Under California law, earned commissions are treated as wages - not discretionary bonuses. Once a commission is earned under the terms of your written commission agreement, your employer cannot legally withhold it, charge it back improperly, or fail to pay it upon termination. Employees whose commissions were withheld may recover the commissions plus waiting time penalties and interest.


Frequently Asked Questions

Generally, no. Once a commission is earned according to the terms of your written commission agreement, your employer cannot simply take it back or refuse to pay it.

Earned commissions must be paid out just like any other final wages, subject to the same final paycheck deadlines and waiting time penalty rules that apply to your last paycheck.

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This glossary is provided for informational purposes only and does not constitute legal advice. Reading this page does not create an attorney-client relationship with Lawyers for Employee and Consumer Rights. Laws change - for advice specific to your situation, contact our office for a free case review.