When are commissions due to discharged employees?

Under Labor Code Sections 201 and 202, all wages are due at termination (or within 72 hours for a voluntary quit without notice), including commissions that are earned and ascertainable at that time.

A commission is earned when all contractual conditions are met (e.g., sale, delivery, or payment). These must be calculated and paid at termination — delay is not permitted.

If a commission is not yet earned at termination, it must be paid immediately once the required conditions are satisfied.

If the commission agreement requires additional duties to complete a sale, a terminated employee is entitled only to commissions for work completed before termination.

Waiting time penalties under Labor Code Section 203 may apply for late payment, up to 30 days.

Read about Commissions in the HR Library.

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