Unpaid Commissions: Written Plans, Earned Wages, and the Clawback Trap

Once a commission is earned under the plan terms, it is a wage — and it cannot be forfeited because you quit, were fired, or the employer rewrote the plan after the sale.

What California Law Says

Labor Code section 2751 requires commission agreements to be in writing with the calculation method stated. Earned commissions are wages protected by the final-pay statutes, and forfeiture clauses are unenforceable where the employee has already done everything required to earn the payment.

How to Fight Back, Step by Step

1. Get the written plan; if none exists, gather offer letters, emails, and past statements showing the practice.
2. Identify each sale or event where the commission was earned under the plan conditions.
3. Calculate amounts due, including commissions that closed after your departure if you completed the earning conditions.
4. Demand payment in writing, invoking waiting time penalties for post-termination nonpayment.
5. File with the Labor Commissioner or superior court depending on size.

Common Questions

My employer says commissions are discretionary bonuses. Are they?

Not if a formula ties them to your sales. A promised, formula-based payment is an earned wage, whatever label the employer uses.

Can they deduct chargebacks from my commissions?

Only as the written plan clearly allows and only against unearned advances — deductions that reach back into fully earned wages violate Labor Code section 221.