Commission Disputes Attorney

Yes. Under California Labor Code § 2751, employers must provide commissioned employees with a written agreement describing how commissions are computed and paid. The agreement must be signed by both parties, and the employer must provide a copy to the employee. Failure to provide a written agreement does not forfeit the employee's right to commissions — it actually strengthens the employee's position in disputes.

In California, commissions earned before termination must be paid regardless of whether you are still employed when the commission becomes payable. Under Labor Code § 204.1, earned commissions must be paid on the next regular payday after they are earned. A commission is "earned" when the employee has completed the required acts (e.g., closing a sale). Forfeiture clauses for earned commissions are generally unenforceable.

In California, employers cannot retroactively reduce commissions on sales already completed or in progress. Prospective changes to commission plans are generally permissible with reasonable notice. In New York, retroactive changes to earned commissions are prohibited under Labor Law § 191. Any reduction must apply only to future sales and should be documented in writing.

Under NY Labor Law § 191(1)(c), commission salespeople must be paid commissions on a regular basis and not less frequently than monthly. Written agreements or terms of employment must specify how commissions are earned and paid. New York courts have held that earned commissions are vested wages that cannot be forfeited upon termination unless the agreement clearly permits it and complies with the law.