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Commissions are considered wages and thus are subject to the normal rules regarding timing of wage payments. However, commissions present special issues regarding the timing of final wages.
Many commission plans delay payment of commissions until payment for a sale is received from a customer, and therefore receipt of a customer's payment on a sale may occur after a commissioned employee quits or is terminated from employment.
The Labor Commissioner recognizes that it is impossible to calculate commissions on customer payments not yet received, and exempts these wages from the normal final wage payment deadlines. Employers should continue to pay out commissions to a former employee after the employment relationship ends for all sales that the employee made in accordance with the terms of the commission plan agreement.
Employers may wish to consult legal counsel about this issue.