Category Archives: Employee Info/Tips – Pre-Litigation – Unpaid Wages

Earn a Commission and Not Paid in Full or Discharged Before It’s Paid? You May Have Strong Legal Rights

Sometimes, in order to save money, an employer will try to shortchange a commissioned employee and pay less than the full commissions earned per the parties’ arrangements. Worse, some employers will fire a commissioned employee after the employee earns a commission but before the commission is paid. This is more likely to occur when the commission at issue is large, and the employer is focused on short-term thinking, i.e. perceived cost-savings of not paying the full big commission (while disregarding the big-picture problem of firing an employee capable of making even more big sales).

Some employers who do this, knowing there could be legal problems, present the shortchanged employee with a contract and/or severance agreement in the case of a discharged employee. Typically, the contract or severance agreement seeks to get the employee to accept a much lesser payment than the full value of the commission and/or other income lost as a result of the discharge.

If you have been shorted on a commission and/or fired by an employer looking to avoid paying you your full commission, please know you may have strong legal rights. It is important to examine your potential rights before you sign a severance agreement, as most severance agreements will waive potential legal claims.

What legal rights might you you have?  I represent workers across the U.S. with unpaid wage claims, and there can be quite strong claims, depending on the State, circumstances and commission arrangement or contract. In Wisconsin, for example, there are a number of legal claims that potentially provide strong legal rights to someone who has not been paid earned commissions.  These claims may include breach of contract claims, wage claims under Chapter 109 of the Wisconsin Statutes, equitable claims, or other important case-law rights (e.g. Phillips v. US Bank) that hold companies responsible for discharging commissioned employees or otherwise trying to reduce their commissions.

If you suspect you may have legal rights, you should consider discussing the matter with an attorney before taking action on your own. Some attorneys, including myself, offer free consultations to evaluate commissioned employees’ situations and determine if there are legal options and/or negotiation leverage worth exploring.

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Work Hours Deducted From Paycheck? Don’t Give Your Employer a Free Lunch.

Free Lunch!
Image by LexnGer via Flickr

Has your employer deducted money from your paycheck for hours that you worked?

Some employers will make mandatory deductions from hourly workers’ paychecks, without regard to time actually worked.  For example, some employers will automatically deduct one half-hour per day for a “required” lunch period, and will make this deduction without checking whether the employee was actually OFF work, and actually took a break, during that time.

Moreover, the employee’s work circumstances may have given him or her no choice but to work through lunch.  It is one thing for an employer to say an employee is free to take a lunch break, or “must” take a lunch break every day.  But that expectation of the employer does little good if there are competing expectations (e.g. busy schedules, complaining customers, limited time available, etc.) that demand an employee perform work during the designated lunch time.

Please know that if you actually WORK during the deducted periods of time (e.g. you worked during the deducted “lunch” breaks), it is NOT acceptable for the employer to reap the benefits of your work without paying you.

It is not enough for the employer to claim they told you that you were prohibited from working.

The Fair Labor Standard Act (FLSA) at 29 C.F.R. § 785.13 (Duty of management) provides the following:

“[I]t is the duty of the management to exercise its control and see that the work is not performed if it does not want it to be performed. It cannot sit back and accept the benefits without compensating for them. The mere promulgation of a rule against such work is not enough. Management has the power to enforce the rule and must make every effort to do so.”

If you are not being paid for work that you performed, you should consider having an employee rights attorney review your circumstances to see whether you should be receiving wages for the deducted periods, and whether the employer is violating wage law.  You may have good legal options to claim wages, and/or take back your free lunch.

DISCLAIMER: The information in this blog is not legal advice, nor does it establish an attorney-client relationship between you and attorney Michael Brown or his law firm.

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Filed under Employee Info/Tips - Pre-Litigation - Unpaid Wages, Employee Tip - Considering a Legal Action, Employee Tips - Unpaid Wages