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Employee Rights to Commissions & Bonuses

Employee Rights to Commissions & Bonuses

Don’t Let Your Hard-Earned Pay Slip Away

You put in long hours, close the deal, hit the target and you expect that commission or bonus to land in your paycheck. When it doesn’t, it stings. You feel brushed aside. Maybe even powerless. Commissions and bonuses aren’t “extras.” They’re your income. The law backs you up, and unpaid wage attorneys can help protect what’s yours.

At Horn Wright, LLP, we know how frustrating it is when promised pay goes missing. Withheld commissions or bonuses throw off budgets, strain families, and leave you drained. If you’re in New York, you benefit from strong wage protections; in Maine and New Hampshire, the rules are similar but timelines can differ; Vermont requires written commission terms, though enforcement works differently. We’ll break it all down, explain what applies to you, and work to take that stress off your shoulders so you can move forward.

Coworkers arguing - Unpaid Wages

Commission Pay Isn’t “Extra”, It’s Your Livelihood

Commission checks often make up a big chunk of your pay. When they disappear, the fallout is immediate: rent, groceries, childcare, everything.

The rule’s simple: once you earn a commission, it has to be paid. Employers can’t rewrite the deal after the fact. Written or verbal, if you hit the mark, they owe you. Courts treat commissions as “wages,” meaning they get the same protection as your salary. And just as employer liability for unpaid wages applies to base pay, it applies to commissions, too.

You worked the hours. You closed the sale. Payment isn’t a perk. It’s your right.

The Laws Standing Between You and Wage Theft

State laws are built to stop employers from shortchanging you. The New York Labor Law requires commission agreements to be in writing, signed by both sides, and clear about how commissions are earned and when they’re due.

  • Write it down and sign it.
  • Spell out the formula and timeline.
  • Pay on schedule.

If your boss claims you “didn’t really earn it,” your contract, or even past practice ,can prove otherwise. Courts usually read unclear terms against the employer.

And if you speak up, don’t let fear stop you. Retaliation is against the law, and you have every right to demand fair treatment without worrying about punishment.

When Unpaid Commissions Cross the Line into Wage Theft

Let’s be plain: skipping earned commissions is wage theft. Courts take it seriously. Employers can be ordered to pay what’s owed, plus interest and extra damages.

Losing a large commission can wreck your budget for months. The stress shakes your plans and peace of mind. Seasoned wage lawyers see it daily and know how to fight back. Knowing the scope of wage theft penalties shows how strongly the law comes down on these violations.

Wage theft often hides in plain sight. A “delay.” A policy tweak. A redefined condition. If you met the terms, missing pay isn’t a misunderstanding but theft.

Bonuses That Were Promised vs. Bonuses That Can Disappear

Bonuses typically fall into two categories: promised or discretionary. The distinction isn’t just technical; it can decide whether that money ends up in your pocket or stays in your employer’s hands.

  • Promised (guaranteed) bonuses: If your employer promises in writing or through a clear policy or email that you’ll get a bonus for hitting goals, that’s enforceable once you do your part.
  • Discretionary bonuses: These are optional, given only if the employer feels like it, like a holiday surprise. They’re usually not enforceable if withheld.

Trouble starts when a promised bonus gets disguised as “discretionary.” Courts look at the reality. If the bonus was tied to performance, it may legally count as wages. Just like with misclassification and unpaid wage claims, labels don’t matter. Facts do.

Guaranteed vs. Conditional Bonuses: Where Employers Try to Trap You

Guaranteed bonuses are straightforward: you hit the goal, you get paid. Conditional bonuses hang on other factors, like company results or staying employed.

Here’s the catch: you finish the work, then the company says a condition “wasn’t met.” Can they dodge the payout? Courts often side with workers when the bonus is tied to completed services. If you delivered, withholding is tough to justify. These fights often fall into wage & hour disputes, where conditions are scrutinized to see if they’re just shields against rightful pay.

Excuses Employers Throw at You and Why They Don’t Stick

You’ve probably heard excuses like these before, and maybe you’ve even had a manager toss one at you:

  • “You weren’t employed on the payout date.”
  • “The client didn’t pay us, so we can’t pay you.”
  • “The deal closed after you left.”
  • “It was discretionary.”

They sound convincing, but they don’t always hold up. If you earned the commission before leaving, you’re still owed. Company cash flow or client delays don’t erase your right. Courts apply the same thinking in recovering unpaid wages from employers: pay owed doesn’t just vanish.

Paper Trails Win in Courtrooms

No written commission plan? Ask for one. After talks, send a quick recap email. Small habits build a strong record.

The law requires written terms that explain how commissions are calculated, when they’re paid, and that records be kept for three years. Courts rely heavily on those records, and gaps here resemble employer record‑keeping violations that lead straight to unpaid wage claims.

Filing Wage Claims: Turning Your Case Into Action

You can file a wage claim with the Department of Labor. You can also sue for breach of contract and wage theft. Both paths can recover unpaid wages, interest, and sometimes double damages. When talks break down, knowing how to file a claim for unpaid wages gives you a clear starting point.

Courts Usually Side With the Worker

If a contract is vague, judges usually read it against the employer who wrote it. Ambiguity shouldn’t be a loophole.

Say the plan doesn’t clearly state you must stay employed through the payout date. Courts may still rule that once you earned the commission, it’s owed even if you left after. That’s consistent with how courts handle unpaid overtime pay lawsuits. Earned pay isn’t optional.

Take Back What You’ve Earned

You shouldn’t have to chase down commissions or bonuses you already earned. Too many workers face this stress daily, and it’s draining. The law is on your side, and with the right support, missing pay can be recovered. If you’re dealing with withheld commissions or unpaid bonuses, reach out to Horn Wright, LLP, today. Our experienced unpaid wage attorneys know how to challenge employers and fight for the compensation you deserve.

What Sets Us Apart From The Rest?

Horn Wright, LLP is here to help you get the results you need with a team you can trust.

  • Client-Focused Approach
    We’re a client-centered, results-oriented firm. When you work with us, you can have confidence we’ll put your best interests at the forefront of your case – it’s that simple.
  • Creative & Innovative Solutions

    No two cases are the same, and neither are their solutions. Our attorneys provide creative points of view to yield exemplary results.

  • Experienced Attorneys

    We have a team of trusted and respected attorneys to ensure your case is matched with the best attorney possible.

  • Driven By Justice

    The core of our legal practice is our commitment to obtaining justice for those who have been wronged and need a powerful voice.