When You're Left Waiting: What to Do About Unpaid Commissions in Texas
Commissions can often be a significant part of an employee's earnings, especially for those working in sales or similar roles. But what happens when those commissions are withheld? Unfortunately, unpaid commissions are a common issue, leaving many workers wondering how to recover the money they've rightfully earned. If you’re in this situation, understanding your rights under Texas and federal labor laws is essential.
What Are Commissions?
A commission is a form of compensation typically tied to performance. For example, an employee might earn a percentage of each sale they close or a bonus for meeting specific targets. These payments are often outlined in a written agreement, such as an employment contract or a commission plan.
In Texas, commissions are considered wages under the Texas Payday Law, provided they meet the criteria outlined in an employment agreement. This means they are subject to legal protections, and employers are obligated to pay them if the agreed-upon conditions are met.
Common Scenarios Leading to Unpaid Commissions
There are various reasons employers might withhold commissions:
- Ambiguity in the Agreement: If the commission agreement is vague or poorly written, disputes may arise about whether the conditions for earning a commission have been met.
- Termination of Employment: Employers often argue that an employee forfeits commissions if they leave the company, even if the sale or work was completed before the employee's departure.
- Failure to Meet Quotas: Some employers set unattainable goals or retroactively change commission structures to avoid paying employees what they deserve.
While some of these reasons may seem valid at first glance, they could still violate labor laws if they result in an employee not receiving fair compensation.
Your Rights Under Texas and Federal Law
Both Texas state law and the federal Fair Labor Standards Act (FLSA) provide protections for employees dealing with unpaid commissions. Under the Texas Payday Law, employers must adhere to the terms of any written commission agreement. If the employee fulfills their obligations under the agreement, the employer cannot withhold commissions.
Moreover, under federal law, unpaid commissions may also be considered a wage violation if they reduce an employee's earnings below the federal minimum wage or overtime thresholds.
Steps to Take if You’re Owed Commissions
If you believe your employer has wrongfully withheld commissions, take the following steps:
- Review Your Agreement: Carefully read your employment contract or commission plan. Ensure you understand the terms and conditions related to your commissions.
- Document Everything: Keep records of your sales, emails, and any communication with your employer regarding commissions.
- Contact an Attorney: A skilled Texas unpaid wages attorney can help you navigate the legal complexities and recover what you're owed.
How Fair Labor Law Can Help
At Fair Labor Law, we understand the frustration and financial strain caused by unpaid commissions. Our team of experienced attorneys is committed to fighting for workers’ rights and ensuring they receive the compensation they deserve.
If you’re dealing with unpaid commissions, don’t wait. Contact Fair Labor Law today for a consultation and take the first step toward reclaiming your hard-earned money.