When companies put their financial interests over employee rights, issues can arise. One common issue relates to bonus and commission earners. As a California employee, you have the right to be paid what you have earned and there are several California laws that protect against the unlawful withholding of bonuses and commissions.
Understanding your rights as an employee as it relates to commission and bonus pay is your first step you in ensuring you are treated fairly and receiving the compensation you deserve. To begin with, California Labor Code Section 2751 states that all commission and bonus plans should be in writing. This means that if your financial arrangement is not in writing, you may be able to bring a legal claim against your employer.
Understanding Your Rights
An employee in California can be paid a commission in a few ways, including:
- When an employee secures a client or customer
- When an employer receives payment a purchase
- When an employee issues an invoice
- When an employee receives a purchase order
Next, there are common questions that arise in respect to commission paid under these scenarios. One, what happens if the purchase is returned, and two, what happens if two employees worked together to make the sale?
It goes without saying that your employer should have outlined in your employment contract the details of what happens in the case of a return. If this has not been done, your employer has violated the California Labor Code. When it comes to two employees closing a deal or sale, this scenario should also be laid out in your employment contract. If your employment contract is silent on how a commission should be split in this instance, then this is something you should speak to your employer or an experienced employment lawyer about.
When to Expect Your Commissions and Bonuses
For some workers, commissions and bonuses frequently make up the majority of their paycheck. What’s more, they rely on being paid in a timely manner. According to the California Labor Code, commissions and bonuses earned should be paid at least twice a month. However, in most cases the terms of payment are outlined in the employment contract signed at the beginning of employment. You may want to review your records.
If your employer has not paid you the commissions or bonuses that you have earned, then there are legal remedies available to you. As a California employee, you have rights and late commission payments, or even failure of payment can have serious ramifications in your life. For a free, no obligation consultation, contact the skilled employment attorneys at Webb Law Group today.