Unpaid Commissions / Minimum Pay To Sales Employees

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There are many ways employers fail to comply with California law in paying commissions and minimum pay to sales employees.

It is generally improper to fail to pay commissions earned but uncollected at the time an employee leaves a company. It is also generally improper for companies to fail to pay earned commissions during so-called “probationary” period (for example, no commissions paid until an employee has been with a company for six months).

Sales employees who do not work in excess of 50% of the time in outside sales work must be paid at least minimum wage and minimum overtime wages for all hours worked. If an employee makes no sales and therefore earns no commissions, the employer is required to pay minimum wage and overtime for the hours worked.

Failure to pay commissions or other wages owed at termination subjects an employer to additional liability for “waiting time wages” of a full day’s pay up to 30 days until the amount is paid in full.