Commission disputes are all too common in California. The threshold question in most of these cases is do the commissions at issue constitute earned wages under the California Labor Code?
What is a “Commission”?
In order to answer this question, let’s first look at what counts as a “commission” under California law. Section 204.1 of the California Labor Code states, “Commission wages are 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.” Section 2751 specifies that “commissions” do not include the following: