If you are a sales representative who is supposed to be paid commission, you work hard to make those sales so you can boost your income. It is likely that a large portion of your income is based off the commissions that you earn. If you are not paid for the sales that you make, you may be the victim of wage theft. Not paying an employee the agreed commission is a form of wage theft. Wage theft is not just limited to low wage workers. Highly compensated workers can experience wage theft. There is a strict time limit, or a statute of limitations, for pursuing a wage theft claim. Make sure you gather supporting evidence and get your claim on track as quickly as possible.
Commission Wage Theft As A Sales Representative
Commission is a form of variable pay renumeration for services rendered or products sold by the employee. Commissions are a common way that employers motivate and reward their sales team. Commissions can be used to encourage specific sales behaviors. As an example, if you sell something at a large discount, you will often have a reduced commission. If your work agreement calls for commission to be paid, and you are not paid your commissions, it is illegally.
Employers may attempt to illegally withhold commissions that are owed to a sales professional. This can be done in a variety of ways. If you agree commission is $100 per sale and your employer reduces that to $75 per sale without warning or an amicable agreement with you, then that is considered wage theft. If you are not paid commissions for all your sales, then you are a victim of wage theft. If you are supposed to be paid $25 per sale, and you make 20 sales and receive no commission, you are wage theft victim.
You need to keep track of your sales and check your paychecks to see that you have paid properly. If you are not being paid properly, you should act promptly. You have a limited time to pursue a claim against your employer, and if you wait until the statute of limitations has expired you will lose your chance to recover your losses. You should always be attentive to your pay and make sure you are receiving all your earnings. You want to catch any problems early before you have lost more money and before too much time has passed to recover damages.
The Next Steps
If you have been the victim of wage theft because you were not paid your commissions for sales, you will need to make sure you follow proper procedure and the right protocol in a timely manner. You should gather all the supporting evidence and documentation, specifically your timecards, sales logs, and paystubs. You should start your claim with your employer. You should speak with the human resources (HR) department to make sure that there wasn’t an honest mistake. If they correct the mistake and pay you for your commission and the problem does not persist, then everything is resolved.
If an employer violates the commission agreement, you will want to look into filing a claim with the Wage and Hour Division (WHD) or the state labor department. You should provide copies of supporting evidence and itemize the amount of commissions you were owed and not paid. You should also research any applicable state laws as well as federal law regarding wage theft, being paid wages, and commissions. You have limited time to pursue a claim. that means that if you wait too long, your claim will not be considered, and you cannot recover compensation for your losses.
Speak To An Employment Law Attorney
If you have an employer who has withheld commissions from a sales professional, you have resources available and there are remedies. Time is of the essence, so do not wait until it is too late to recover your lost commissions. You should speak with an employment law attorney about your situation. An employment law attorney is familiar with both state and federal laws and will know the best way to proceed with your claim.
Speak to your lawyer about the payment options because some attorneys work on a contingency basis and are not paid until you win your claim while others require a retainer to be paid in advance. To ensure your claim is proceeding properly, complete the Free Case Evaluation form so you can share the details of your commission wage theft claim with an employment law attorney who handles claims in your area.
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