How do the Final Paycheck Laws Affect Employees Paid on Commission?
Earned Commissions and Final Paycheck Laws
Whatever the reason for your separation from employment, you are entitled to your final paycheck. If you are terminated (for cause or otherwise), you should be paid on the day of termination. If you resign voluntarily, you should be paid the full amount in the next regularly scheduled payroll.
This can get tricky with commission-based employees, and will depend on when you "earned" your commissions under the employer's commission policy.
If there is no written policy, you should be paid commissions on any sales you made- "sales" meaning the customer agreeing to purchase, regardless of the timing of invoicing or payment- as of your last day of employment.
If your employer has a written policy that defines the trigger for commissions by some other event (invoicing, shipment, payment), what you are owed at termination may require a closer review by an employment lawyer.
Even though your employer can define by policy when commissions are earned, they cannot enforce a policy that states you forfeit earned commissions if you are not still employed on the date of the scheduled payout.
Learn more here about commission pay under the Massachusetts Wage Act.
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