Despite labor laws protecting employees in Los Angeles, wage disputes and failure to pay commissions still remains a widespread problem in California. Since 2013, California’s Labor Code section 2751 has required employers to provide a written commission plan to all employees whose compensation involves commissions.
It’s been nearly five years since the section 2751 came into power, and it’s fair to conclude that it’s not as effective as expected. A 2010 study found that a staggering 80% of low-wage workers in Los Angeles who worked more than 40 hours a week were not paid the legally required overtime rate of pay. But that’s just the tip of the iceberg.
Based on the study’s findings, low-wage workers in Los Angeles lose more than $26.2 million per week due to employment and labor law violations, including failure to pay commissions. If you have been the victim of an employer failing to pay commissions it is crucial to contact a Los Angeles employment law attorney.
Signs you’re a victim of labor law violations
Despite California law protecting employees who have not been paid the money they have earned, plenty of employers still fearlessly violate labor laws by:
- not calculating commissions properly to minimize spending;
- delaying payment of wages, commissions, and bonuses;
- not providing a written commissions plan agreement;
- failing to pay earned commissions during a so-called “probationary” period;
- terminating an employee to avoid paying wages, commissions, and bonuses (make sure you weren’t wrongfully terminated).
If you have caught your employer in any of the above-mentioned illegal activities, find an experienced Los Angeles employment law attorney to determine the value of your claim and handle all legal aspects of your case. Call JML Law at 818-835-5735 to get a free initial consultation and get back all of the money you have earned.
What does the law say about unpaid commissions in Los Angeles?
Plenty of employees in Los Angeles are paid on a commission basis. Real estate agents and vehicle sales personnel usually have their income based on a percentage of each sale made. While a formal written commission plan agreement is obligatory when starting a contract, a verbal promise by the employer still obliges him/her to pay commissions and makes them liable for a serious labor law violation if earned commissions are not paid.
Do note that your compensation must qualify as “commission” for you to be able to pursue legal action against an employer who fails to pay commissions in Los Angeles. That means (1) your duties must principally be selling the employer’s product or service and (2) your commission must be factored into your overtime rate.
Under federal and state law in Los Angeles, you are exempt from overtime if you earn more than 50% of your income from commissions, and your income must be one and a half times California’s minimum wage ($10.50 per hour as of Jan. 1, 2017).
What to do if you’re denied commission by the employer?
If you or your co-workers have been denied commission or have not been paid commissions after termination, seek help from one of our Los Angeles employment lawyers who will:
- determine the value of your claim, which may include the money you haven’t been paid as well as interest, penalties and other damages;
- file lawsuit on your behalf;
- Ensure that you are paid your commission and other compensation.
