Most commonly associated with the sales industry, employees earning commissions have unique rights from regular wage jobs. They can vary depending on commission structure. Commissions come in the form of a flat rate, a percentage of a transaction, or even a performance benchmark. Regardless of the commission structure, workers deserve fair compensation for their hard work.
Sales commissions form an important component of the annual compensation of many North Carolina employees. These include employees in real estate, finance, sales, private equities, pharmaceutical, and many other sales-related industries. The payment of unpaid commissions are among the most contentious area of wage and hour litigation, and for that reason, we are here to help.
Promises of Commissions
If an employer promises the payment of commissions, they must comply. If the commission agreement changes, employers must notify employees of the changes in writing.
When an employer changes its commission policy, the new policy is only effective going forward, but will not apply retroactively. For example, if your employer has a policy to pay you a certain percentage and they change that at the beginning of a new month, you are still entitled to the previous percentage of commission from the previous month.
An employee must receive their commissions even after termination or resignation. The only exception is if there happens to be a written forfeiture clause.
Finally, because commissions are considered wages the North Carolina Wage & Hour Act (NCWHA) considers commissions wages, you may be awarded liquidated damages – twice the amount of unpaid commissions. So, if your employer only paid $2,000.00 in January, a judge can award you up to $4,000.00 in commissions.
Unpaid Commissions Attorneys
Maginnis Howard has successfully represented workers in an extensive range of industries throughout North Carolina. Our firm has handled cases in a range of wage and hour issues, including unpaid wages and overtime issues.
Our attorneys would love the opportunity to assist you in obtaining fair compensation. Maginnis Howard provides free consultations to employees claiming their employer owes unpaid wages. Further, our firm accepts these cases on a contingency basis, meaning we only charge fees if the case is successful.
If you have any questions regarding this blog, please contact us at by phone (919) 526-0405, by email (info@carolionalaw.com, or through our contact page.
