If you are an insurance agent, you may receive commission on your sales. Of course, that depends on your employer and the employment contract. If you are to be paid commission and you earned commissions, but you were not paid for your sales, you may be the victim of wage theft. Employers sometimes use sales commissions as a way to help increase employee productivity. If you are not paid those commissions, the employment agreement is being broken and your employer is violating laws. You can pursue a wage theft claim against your employer to recover your lost commissions and damages.
Always review your paystubs and keep track of your sales, so you can confirm that you are receiving all your commissions. If you notice a problem, it should be addressed promptly. The longer you wait, the more money you will lose. Also, you have a limited time for pursuing a claim.
Commission Wage Theft As An Insurance Agent
The Fair Labor Standards Act (FLSA) indicates the federal minimum wage and establishes what is considered wage theft. It also details the consequences faced by an employer who fails to properly pay workers. If your agreement includes commission as part of your earnings, your employer must pay you. The Wage and Hour Division (WHD) of the United States Department of Labor (USDOL) enforces the FLSA and any laws related to wage theft.
Depending on your employer, your compensation package could consist of salary, wages, or commission, or it could be a combination of two of those. You may solely be paid commission, which is performance-based. However, because of the federal laws, an employer cannot create a commission standard that is so low it is impossible for employees to be paid minimum wage. There are many ways an insurance agent could suffer wage theft because of not being paid commissions as agreed.
Your agreement may indicate you will be paid a flat fee for each policy that you sell. When you receive your check, you realize that you were not paid for all your sales. Another way that you could face wage theft is if you were not paid the agreed commission. As an example, you were promised $100 per policy, but you were only paid $50 per sale. That is also wage theft. You should always keep track of your sales and compare your earnings to your actual paycheck. You should address any discrepancies early on.
The Next Steps
The Wage Hour Division’s enforcement of the FLSA is carried out by a team of investigators set up in field offices that are stationed across the United States. If you were not paid your commissions, you will need to contact the Wage and Hour Division in your state. You will need to provide copies of any supporting evidence and documentation that you may have regarding your situation and showing that you were not paid all your commissions.
The WHD investigator will conduct their own investigation into your situation. They will investigate wages, hours, and other employment practices and conditions. If you have suffered from commission wage theft as an insurance agent, you should speak with a WHD representative right away. You only have two years from the date of the wage theft to pursue a claim against your employer to recover your lost commissions and any other damages that you may have suffered because of the wage theft.
You should cooperate with the WHD investigator. Promptly respond to any requests for information and maintain a file of correspondence regarding your claim. If the WHD finds an ongoing pattern of wage theft and illegal practices with your employer, or if they cannot get the matter resolved, you will be advised to file a lawsuit against your employer. A judge or a jury will then determine the outcome of your claim and determine the value of your claim and your total losses.
Speak to An Employment Law Attorney
If you are an insurance agent who has not been paid commissions, you should speak with an employment law attorney. An employment law attorney is familiar with the state and federal laws that apply to your situation. An attorney will investigate your claim and will gather any supporting evidence or documentation needed to help your claim prevail. When you speak with an attorney, be sure to discuss payment plans. Some attorneys require that a retainer is paid in advance, but others will take cases on a contingency basis and not be paid until your claim has been won.
