Attorneys Robert W. Smith and Christopher J. Eibeler

Unpaid Commissions Law

Are you employed as a salesperson who is compensated, in full or in part, by commissions, and whose employer has retroactively changed your commission structure in order to stiff you out of your hard earned money. If so, your employer may be in violation of state and federal wage laws, breach of contract and possibly, fraud. A New Jersey employer cannot reduce an employee's compensation by changing the method of calculating earned sales commissions without any prior notice to the employee. If you are employed as a salesperson, and your employer retroactively changed how you are to be paid your sales commission, you may have legal recourse to recover the money that is owed to you.

The New Jersey Wage Payment law requires that employers pay the full amount of wages due to their employees on regular paydays. Wages are defined by the law as the direct monetary compensation for labor or services rendered by an employee, which includes sales commissions. Supplementary incentives and discretionary bonuses are not considered wages. Prior to changing the method of how to calculate an employee's sales commissions, an employer must first advise the employee of the change. Failure to do so, will give rise to liability under the New Jersey Wage Payment Law in addition to a potential claim of breach of contract.

Employers are also prohibited from taking retaliatory action against employees for complaining about unpaid sales commission that are due and owing from the employer. Under the New Jersey Conscientious Employee Protection Act ("CEPA"), employers cannot take adverse employment action against an employee for complaining or threatening to disclose to a public body that they are owed an unpaid sales commission, if the employee has reasonable belief that the sales commission was earned and is outstanding. If an employer takes retaliatory action, such as a demotion or termination, in response to such a complaint, disclosure or threatened disclosure, the employer may be liable for the damages their unlawful actions has caused to the employee, as well as attorney fees and costs of suit.

Our employment attorneys represent employees, including sales professionals, in an all areas of employment law. If you are employed as a sales person who believes they are owed a commission, or have been retaliated against for complaining about an unpaid commission, feel free to call our office to discuss your issue with one of our New Jersey employment lawyers.

DISCLAIMER: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
Client Reviews
We had a wrongful termination issue combined with a denial of unemployment insurance. Chris Eibeler was our primary attorney. His partner Bob Smith also consulted and gave us good advice. They were both so kind, caring, and professional. They guided us though a very tough time and a positive outcome versus a prior employer. They were also able to reverse our denial of unemployment insurance. I cannot recommend Smith and Eibeler highly enough. The entire staff is very professional, personable, and caring. Tom Wilson
I went to Smith Eibeler LLC for a last minute unemployment matter. Chris, Diane and his staff were very professional and easy to talk to. They provided knowledgeable insight and also kept me in the loop with the what was happening. I would not hesitate to go to him again. John Jung
Chris Eibeler (and the whole team) is very knowledgeable in all aspects of employment/unemployment here in NJ. They break down the most difficult aspects of the law, which allows you to conceptualize and better understand the complexities of the NJ Labor & Employment system. Smith Eibeler should be your first call regarding any Employment, workforce, or Labor questions here in New Jersey. I highly recommend them. Brian Allen
I approached Chris Eibeler regarding an unemployment case in early 2016. Him and his staff are some of the most professional people I have ever dealt with. The process took a while, but his approach to hard questioning helped me win my case. He knows how to get the job done and I am glad I went to him. I would recommend him to anyone in the future who asks for a lawyer. Thank you Chris! Tim F.
I highly recommend the office of Smith Eibeler for employment related issues, particularly anything related to restrictive covenants or post-employment contracts. I found Smith Eibeler via the web and cannot believe how fortunate I am to have found them. My case was handled by Bob Smith who represented me in a potential lawsuit by my former employer for violation of a post-employment contract (not a restrictive covenant per se). Bob was professional, friendly, understanding, and above all extremely helpful. Bob helped me avoid a lawsuit and was extremely knowledgeable in this field. I was thoroughly impressed with his prowess. Hopefully I will never have a legal issue related to employment again, but if I do, I will not hesitate to retain Smith Eibeler again! Gavin Tully