Stockbrokers make buy and sell orders for stocks and securities for their clients. Usually, a significant portion of a stockbroker’s income is commission. These commissions can either be a flat rate for each transaction or a percentage of the transaction. When you do not receive all the wages that you have earned, you should immediately bring it to your employer’s attention. You have a limited time to pursue a claim for wage theft if your employer does not address the issue and pay you what you are owed.
Commission Theft As A Stockbroker
If you are a stockbroker who is supposed to be paid commissions, you have rights and there are resources available to help you. The Fair Labor Standards Act (FLSA) established minimum wage, overtime pay, recordkeeping, and employment standards. It also details wage theft. If an employee is not paid his or her earnings, whether they are salaried, hourly pay, or commission, they are violating the laws. The employer can face harsh penalties if the issue is not corrected.
Most states have their own employment laws that also come into play. State laws may have specific guidelines for the payment of commission. You should understand these laws and know your rights as an employee. There are many ways a stockbroker could be subjected to wage theft, so make sure you are attentive and catch any issues right away before you face more financial losses.
As an example, your employer may not include all your trades on the list and therefore, you are not paid all your commissions. Your employer may agree to pay you a flat rate for each trade, but when you are paid, you get considerably less than you agreed to. Your employer could also pay you a lower percentage rate for your commission. For example, you may have agreed to a 5 percent commission, but your employer may be paying you only 3 percent. You will need to calculate your total losses so you will know how much your employer owes you. Always keep track of any sales or trades and compare them to your paycheck.
The Next Steps
If you are a stockbroker who has been subject to wage theft, you will need to address the matter promptly. If an employer violates your employment agreement regarding payment of commission, you will need to look into the claims process so you can file a claim to recover your earnings. The amount of money you can recover in your wage claim or lawsuit against an employer is referred to as damages. Among these damages are the commissions you earned, but you were not paid, and any legal fees associated with the claims process.
You will start the process by notifying your employer of the pay discrepancy. You will need to maintain evidence or documentation that shows you notified your employer in an effort to resolve the matter. Document any response – or lack of response – from your employer. If the issue is not resolved, you will need to file a complaint with the Wage and Hour Division (WHD) of your state’s Department of Labor.
The WHD investigator will investigate the matter and will speak with you as well as your employer. They will try to resolve your situation and ensure you are fairly compensated. If you cannot get the matter resolved at this level, you will advance to the final step and pursue a lawsuit against your employer for your lost wages, which in this case would be unpaid commissions. If the claim is not settled, a judge or jury will determine your claim’s fate and how much you are owed by your employer for damages because of their breech of the law.
Speak To An Employment Law Attorney
If you are a stockbroker who was not paid the commission that you were entitled to receive as part of your compensation package, you should enlist the help of an employment law attorney. An employment law attorney will be well versed in the state and federal employment laws that apply to your situation. Your attorney will know the best way to proceed with your claim against your employer and can determine a fair settlement for your damages.
Some employment law attorneys ask for a retainer to be paid upfront while others work on a contingency basis and will not be paid until the claim has been won. You have two years to pursue a claim, so time is of the essence. Complete the Free Case Evaluation Form to share the details about your wage theft as a stockbroker claim.
