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
HRCalifornia Resources
All resources require membership. For full access to every form, checklist and tool on HRCalifornia — plus the HRCalifornia Helpline for live expert support — become a member.