When you work on commission, your income depends on the deals you close, the clients you bring in, and the results you deliver. That’s why it can be incredibly frustrating—and financially damaging—when a company refuses to pay you the commissions you’ve earned. Unfortunately, commission disputes are common across many industries in New York, from sales and recruiting to real estate and creative services.
If you’re facing this situation, it’s important to understand your rights, the steps you can take, and how to protect yourself moving forward. Disputes over earned commissions can often be resolved, but only if you take action quickly and strategically.
Why Commission Disputes Happen
Commission disagreements don’t always occur because of bad intentions. Sometimes they are caused by misunderstandings, unclear agreements, or poor record-keeping. But in many cases, they stem from a company trying to avoid paying money it owes. Common reasons include:
- A company changing its policies after you’ve already earned the commission
- Disputes over whether the sale was “final”
- Claims that the client canceled or did not fully pay
- The employer arguing you didn’t meet all conditions
- Confusion about draw vs. commission structures
- A company intentionally delaying payment in hopes you will give up
Regardless of the reason, New York law provides strong protections for workers who are owed commissions.
What Counts as an “Earned” Commission?
In New York, a commission is considered “earned” when you meet the conditions laid out in your employment agreement. This might include closing a sale, securing a contract, bringing in a client, or completing specific tasks tied to the commission structure.
Even if you leave the company, you may still be entitled to commissions earned before your departure. Employers cannot refuse to pay you simply because you resign or are terminated—unless your written contract clearly states otherwise.
This is one of the most misunderstood areas of commission law, which is why many workers don’t pursue the money they’re owed.
Steps to Take When Your Commissions Go Unpaid
When a company refuses to pay an earned commission, timing matters. Here’s how to protect your rights and strengthen your case.
1. Start by gathering proof
Collect all documentation relating to your commission structure and your work. This includes:
- Your employment contract
- Any commission plans or policies
- Emails confirming your deals
- Invoices, sales reports, or performance records
- Payment history
The more documentation you have, the harder it is for a company to deny payment.
2. Ask for clarification in writing
Sometimes a misunderstanding can be resolved with clear communication. Write a professional email asking:
- Why the commission was not paid
- Whether any conditions were not met
- When you can expect payment
Keeping everything in writing helps build a record of your efforts.
3. Escalate the issue internally
If your supervisor doesn’t respond, bring the issue to HR or upper management. Many companies will resolve the dispute at this stage to avoid legal problems.
4. Know your rights under New York law
New York Labor Law provides strong remedies for unpaid commissions. In many cases, workers can recover:
- The unpaid commissions
- Interest
- Liquidated damages up to 100% of the unpaid amount
- Attorney’s fees
Because of these penalties, companies often settle quickly once a legal claim is filed.
5. Consider professional help
If the company continues to avoid paying you, speaking with an attorney can make a significant difference. A law firm experienced in judgment collection and unpaid commissions—such as Warner & Scheuerman—can help you evaluate your agreement, assess the strength of your claim, and take the necessary steps to recover your money.
Many cases are resolved without a trial once the employer understands the legal consequences of withholding earned commissions.
What Happens If You Win a Commission Claim?
Winning a lawsuit or arbitration case is only half the battle. Some companies still refuse to pay even after a judgment is issued. That’s when enforcement becomes necessary.
New York allows judgment creditors to use several tools to collect what they’re owed, including:
- Wage garnishment
- Bank account restraints
- Property liens
- Asset searches
- Turnover proceedings
These tools can be powerful, especially when handled by an experienced lawyer. If a company is hiding assets or attempting to avoid payment, firms like Warner & Scheuerman can navigate the enforcement process and ensure the judgment is properly collected.
Protecting Yourself Going Forward
Commission disputes don’t just cause lost income—they create stress, uncertainty, and career disruption. To reduce the risk of future disputes, consider the following:
- Always insist on a written commission agreement
- Review commission plans annually
- Keep organized records of your work
- Track your commissions independently
- Follow up on unpaid commissions immediately
Being proactive can prevent many problems before they start. If a company refuses to pay you the commissions you’ve earned, you don’t have to accept the loss. With the right information and support, you can stand up for your rights and recover the compensation you deserve.