When must commissions be paid in California?
Your employer must pay your earned commissions in a timely manner as outlined in your commission agreement. Under California’s payday laws, all earned sales commissions should be paid at least twice during each calendar month on days the employer has specified in advance as paydays.
For sales commissions earned from the 1st to the 15th of a month, an employer has until the 26th of that month to pay an employee. For commissions earned between the 16th and the last day of the month, the employer is required to make the payment by the 10th of the next month.
There are some exceptions to the two times a month payday rule. For example, auto dealers receive their commissions once per calendar month.
Employees who are terminated or quit their job after giving at least 72 hours’ advance notice are entitled to receive all unpaid wages, including earned commissions, on their last workday. If your employer has withheld the commissions you have earned, Erlich Law Firm can help.