Los Angeles Unpaid Compensation & Commissions Attorney

Upon committing to a work contract, it is expected that you, as the employee or contractor, and your employer follow the terms of this agreement. There are situations where the employer does not honor these agreed-upon terms by withholding payment from their employees or contractors. If you’ve experienced this injustice, you may have the legal right to claim the compensation owed to you, and a Los Angeles unpaid compensation & commissions attorney can help you do so.

Experiencing wage theft as an employee or contractor can result in high levels of anxiety and concern. When facing a large employer, it can feel intimidating to pursue a remedy to this injustice for fear of retaliation or negative repercussions. Luckily, there are professionals eager to help you navigate the legal system and hold your employer accountable.

At Park APC, our team is equipped with local employment attorneys whose focus is to support these claims. We have years of extensive experience representing clients’ unpaid compensation and commissions claims, and we’re prepared to help you as well. Our attorneys hold an exhaustive understanding of labor laws in the city of Los Angeles and the state of California.

Is Commission-Only Pay Legal in California?

Commission-only pay refers to pay that’s determined not by hours worked but rather by services provided or sales made. Commission-only pay is legal in the state of California, granted this pay meets the regulations laid out in the California labor code. For your commission-only contract agreement to be legal, it is vital for it to adhere to this labor code.

Taking time to understand the conditions of your compensation-only agreements before confirmation of work can save you stress later on if the terms you assumed you agreed to were different from those in the document.

Before the start of a contract Los Angeles, take time to ask questions of the employer you are working for and understand how this company generally proceeds with commission-based work. Below is a list of the California Labor Code key criteria:

1. Written agreements and a clear definition of terms. Commission agreements must be signed by both contractor and employer stating the specific work conditions and highlighting how the commission is calculated and when it is paid.
2. Minimum wage requirements. It is the duty of the employer to ensure the rate being paid to the contractor meets or exceeds both state and city minimum wage payment requirements. Consider the minimum wage requirement in your local state and city, and consider sharing this with your employer in a contract if they offer a rate that does not meet this amount.
3. Adherence to labor laws. Both parties are required to meet California’s labor laws to avoid future legal issues and disputes. It is helpful to seek legal guidance on California labor law to ensure proper compliance.

If you are concerned that your commission-only pay role with an organization or company does not comply with the California Labor Code, it is your right to seek fair treatment.

What Is Commission, and Do I Have Rights as a Commission-Based Worker?

Commissions are generally defined as a type of payment or compensation paid to individuals for the services and skills they provide to a company, organization, or employer. Most often, employees are paid commissions when they make a sale. Companies use this pay system to motivate workers to perform at a high level and make as many sales as they can. Workers who receive commissions for sales can work in various industries, such as real estate, retail, and insurance.

If you work based on commissions, it is essential to understand the legal rights you hold for your labor. Whether you’re a full-time employee or a part-time contractor, there are laws and regulations protecting your work and income that your employer must adhere to.

Regardless of your level of experience with commission-based work, staying updated and informed on labor laws in your state and city is crucial. Local laws and regulations ensure fair treatment as you exchange your skilled labor for compensation.

Understanding Your Rights as an Employee or Contractor

Grasping your rights, whether you operate as a full-time employee or a contractor, holds incredible importance.

Contract workers are typically hired on a short-term, non-permanent basis to provide a specific service based on their specific skills, operating independently from the companies that commission their work. This type of employment typically excludes contract workers from the full benefits package, such as health care, that a full-time employee receives due to the project-based and short-term agreement they hold with the company hiring them.

Full-time employees often engage in long-term work agreements that commit them to a single specific company where they engage in a certain amount of hours of weekly work. In the United States, full-time employment generally equals 40 hours of work a week. This long-term commitment often awards full-time employees inclusive benefit packages, oftentimes including health care.

Whether you’re a full-time employee or a contracted worker, it is illegal for employers to withhold your compensation and commission. If you’re unsure if your employer violated labor laws or your contract, a Los Angeles unpaid compensation & commissions attorney can advise you.

What Steps Should I Take When Facing Unpaid Commissions?

1. Keep track of all documentation of agreements and communications. It is important that all agreements created with an employer are documented, signed, and stored in a safe location so that clear tracking of all agreements can be easily traced for future reference. When making changes to a contract’s terms, keep documentation of new information as well.
2. Notify your employer or company. If you notice that your wage does not match the calculation agreed upon in your signed contract, contact your employer. It is important to provide notice, as there is a chance that a legitimate accidental error was made in regard to your payment. Addressing this issue to your employer allows them time to remedy this mistake.
3. Seek legal assistance and potential remedies. If your employer is unable to solve this issue in a fair and prompt manner, it may be time to seek professional legal counsel. A legal representative experienced in unpaid compensation can assist you in navigating a wage claim against your employer to seek a just solution.

What Are the Signs of Unpaid Compensation and Commissions?

Wage theft can often be obvious, but at other times, it can be subtle. There are a few situations to watch for to determine if your employer owes you missing wages:

• Your employer is paying your state’s minimum wage rate rather than the city’s minimum wage rate. In this case, employers should be paying the higher rate.
• Deductions on your paycheck that are unaccounted for
• Not receiving a full earned commission amount
• You are being classified as an independent contractor when you are fulfilling the role and requirements of an employee who is required to be on payroll and receiving benefits.
• You are required to work on your lunch and/or rest break and are not compensated for that time.
• You work over 40 hours a week but do not receive overtime pay.

If any of the above circumstances apply to you, or if you believe that you have experienced wage theft by your employer in another way, reach out to our Los Angeles unpaid compensation & commissions attorneys. You can seek our assistance in determining if you have viable legal grounds to pursue a wage claim against your employer.

What Is the Law on Unpaid Commissions in California?

The law on unpaid commissions in California falls under Section 2751 of the California Labor Code, which highlights key requirements for the payment of commissions. The California Labor Code’s key points are as follows:

1. Written contracts. An agreement is drawn up to highlight how all commissions will be calculated and paid.
2. Payment upon termination. Payment of all earned commissions must be made immediately upon termination unless otherwise agreed upon by the employee or contractor, with this agreement documented in writing.
3. Earned commissions. California law states that commissions represent compensation stemming directly from a service provided. Other types of bonuses or incentives generally do not fall under the category of earned commissions.
4. Record-keeping. It is the responsibility of the employer to keep a detailed account of all agreed-upon terms, sales, and payments that an employee can reference at any time.
5. Penalties for non-payment. Upon any violation of the commission payment requirements, an employer may be met with penalties. These penalties may include owed wages, any interest accrued, and potentially the legal fees incurred by the employee seeking the accountability of their employer.

If you think your employer may have violated any law in the California Labor Code, a lawyer can help review your contract, examine the evidence, and determine if you have the basis for a claim. The codes for labor and employment can vary by state and city, so a lawyer can use their knowledge to uncover which codes have been violated.

Your contract must be legally compliant, so if an aspect of the contract is illegal, it doesn’t have to be upheld.

Do Companies Have to Pay Out Commission After I Quit?

Employers cannot withhold commissions or any other type of compensation just because you quit, and neither can they withhold compensation after firing you.

Due to the California Labor Code, all employers are generally required to pay out all earned commissions as agreed upon in the employee and/or contract agreement promptly upon the employee or contractor’s final day of work. This payout can vary in some cases, depending on the employment agreement signed at the start of the work agreement.

Regardless of the circumstances under which a contractor or employee departs from their work, be it termination or resignation, they have equal entitlement and should receive full earned compensation, including commissions.

It is essential to review the terms of an employment and/or contractor agreement, as there may be specific language around the payout of commissions upon termination or resignation. According to California labor law, employers must pay their employees all commissions they have earned upon termination.

If an employee quits without 72-hour notice, employers must pay them all earned commissions within 72 hours. If an employee does give at least 72-hour notice, their commissions must be paid on their last day of work. It may take some time for employers to calculate commissions, but everything that can be reasonably calculated should be paid.

If you were terminated without receiving all the commissions you earned, this is illegal. It’s also illegal if your employer did not pay you on time, enough, or at all when you quit. You deserve compensation for the services you provided to your employer, regardless of your current employment status. If you haven’t received all your commissions after being terminated or quitting, an employment lawyer can help you file a claim against your employer.

Pursue Help From Park APC to Recover What You’re Owed

If you fear that your employer has violated local labor laws or the terms and agreements of your employee or contractor contract, resulting in wage theft, you have the right to seek legal action. According to California labor laws, your employer can be held accountable for withholding your pay. You can seek professional help from a Los Angeles unpaid compensation & commissions attorney at Park APC.

At Park APC, we understand how frustrating it can be to be denied the money you rightly earned. It’s disconcerting when the agreed-upon terms for your contributions are not honored by your employer, but you do not have to navigate the process of seeking fair compensation alone.

To give your legal claim the greatest chance of success, the support and care of an experienced attorney who can help assess your case, create a clear legal strategy, and lead you toward the optimal outcome is crucial. The attorneys at Park APC are skilled in handling unpaid compensation and commissions claims and desire, above all else, to see your rights protected. Don’t fight for what you are owed alone; our legal team is here to support you.

Contact us today to schedule a consultation with one of our Los Angeles unpaid compensation & commissions lawyers.