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Commission must be paid at same time as wages

by on
in Employment Law,Human Resources

Q. We have a written employment contract with a worker that includes her salary, but an additional sheet attached to that outlines the commission structure. If the employee resigns with a month's notice, what is our obligation to pay approximately $10,500 in earned commissions? —P. D., Pennsylvania

A. Almost every state has a wage payment statute that requires employers to pay any outstanding wages and commissions to employees upon termination of the employment relationship.

For example, the Pennsylvania Wage Payment and Collection Law says that when an employee is separated from employment before the regularly scheduled payday, the employer must pay any outstanding wages—including commissions and accrued unused vacation time—to the employee no later than the next regular payday.

Check the wage payment law in your state to know the deadlines for the payment of wages and the types of deductions that may be withheld from the final paycheck.

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