What Commissions am I Owed if I am Fired or Quit Before Being Paid?
Your Commission Payment Rights at Termination
If you are fired, you are supposed to be paid all of your final wages-including commission pay- on the day of termination. If you resign, you are supposed to be paid all of those wages in the next regularly scheduled payroll.
Many employers have policies that state that you must still be employed when commissions are paid out in order to receive such a payment. Though it is probably legal for the employer to apply such a policy to commissions where the contingencies for earning them have not been met, if you have already earned the commission prior to termination, you are entitled to that payment regardless of the policy.
Your employer's written policy will control the question of when the commission is earned. For example, if the policy states that commission is earned when the customer pays, you may well have deals you closed before termination that would not yet be considered earned.
If the employer has no written policy, the default under the law is that a commission is earned when the customer agrees to buy the product or service, even if there is a delay in delivery and/or payment.
Learn more here about payment of commissions under the Massachusetts Wage Act.
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