Commission Pay

Commission Pay Disputes

Commission pay in California has very specific rules. If you work in a position where there are commission incentives, it is important you understand the basics about California commission regulations so you can make sure that you are being paid all that you are owed.

Effective January 1, 2013, California Labor Code section 2751 requires employers to provide written commission plan agreements to all employees who perform services in California and whose compensation involves commissions. The agreement must explain the method by which the commissions shall be computed and paid. The commission plan must also be signed by the employer and the employer must obtain a signed receipt from each employee. Failure to provide a written agreement regarding commission pay is illegal.

The new law incorporates the definition of commissions from California Labor Code section 204.1, which defines commission wages as “compensation paid to any person for services rendered in the sale of such employer’s property or services and based proportionately upon the amount or value thereof.”

Once the parties enter into the agreement and the employee fulfills the appropriate conditions, the employer must pay the commission. On the other hand, discretionary bonuses cannot be enforced in court. The classic examples are Christmas bonuses.  In these circumstances, the employer has made no promise to the employees and has no criteria for setting these bonuses. Rather, the employer assesses the employee’s performance after the work has been performed and decides if and how to compensate the employee. Simply put, if there is no mandatory obligation to pay the commission, then the commission cannot be enforced in court. At Righetti • Glugoski, P.C., our lawyers are trained to look for that obligation in the company’s papers and the circumstances of the case.

Call us To Discuss Commission Pay In California

Please contact our firm and have an immediate, complimentary and private consultation with one of our skilled attorneys to discuss your commission pay. You may call us at 415-983-0900 or 800-447-5549 to get started.


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Circle K Overtime Cases, JCCP 4267, Order on Final Approval of Class Action Settlement, Honorable William F. McDonald
"Class counsel have extensive experience litigating class actions, particularly in the area of labor and employment, and prosecuted this matter efficiently and with a high degree of professionalism. Class Counsel's costs in prosecuting this Action are hereby approved as reasonably incurred."
Lopez et al. v. Euromarket Designs, Inc., (d/b/a Crate and Barrel), Case No. BC436515 on Final Approval of Class Action Settlement, Judge Soussan G. Burguera
"Class counsel capably represented the class in a manner which has resulted in a settlement well received by the class and which has been approved by this Court. This case presented issues of law which are hardly settled in the field of wage and hour litigation and the Court recognizes that the attorneys for the class worked diligently and responsibly for the interests of the class members."
Groves et al. v. Ross Stores aka "Ross Dress for Less Stores", Case no. RG 04183362 on Final Approval of Class Action Settlement, Honorable Steven Brick
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I recently had a issue I needed guidance with regarding exempt/non-exempt classification with a previous employer. I had not been paid for overtime hours that I had worked, prior to leaving the company. I contacted Righetti Glugoski, and quickly spoke to Matt Righetti. I was very pleased at how comfortable he and his staff made me feel. He kept me informed along every step of the way, and the whole process was very transparent. In a very short period of time, Mr. Righetti not only got me the compensation I was entitled to, but he was also able to get me penalties and fees that were owed as well. My entire experience with Matt and his firm was amazing, and I couldn't have been happier. I would highly recommend Matt and the Righetti Glugoski law firm to anyone who needs representation with a labor issue.
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