Can My Employer Define When a Commission is Earned?
When a commission is earned, or "due and payable" under The Massachusetts Wage Act, can be defined by your employer's commission policy. This policy, however, should bind the employer when it comes to disputes about timely payment of commissions under the Wage Act.
The commission policy should also not be changed retroactively. For example, if you are working under a quarterly commission plan that provides a commission of 5%, and your employer changes it in the last week of the quarter to 2%, you could have a Wage Act claim for any closed transactions you earned at 5% before the change.
A commission policy can define when commissions are earned, but it cannot unilaterally declare that earned commissions will not be paid at termination, or that you cannot receive payment for earned commissions if you are not employed at the time for scheduled payout.
Learn more here about commission pay under the Massachusetts Wage Act.
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