Sales Commissions

A sales commission is a sum of money paid to an employee upon completion of a task, usually selling a fixed amount (or more) of goods or services. Employers sometimes use sales commissions as incentives to increase worker productivity. A commission may be paid in addition to a salary or instead of a salary.

The Fair Labor Standard Act (FLSA) does not require the payment of commissions. Employees should have a written agreement with their employers specifying the commission and the rate/amount to be paid. If employers do not keep their word, employees can file a complaint at the small claims court (an attorney is not required and the filing fee is low), in case the amount is not large. However, if the commission amount due is large, employees should seek an attorney's help, and the presence of an attorney is permitted by the court. In some states, the law awards an attorney's fee to the employee if the claim is successful. (A Letter protesting nonpayment of a commission at the time of being fired is available.)