Employers must pay employees for the wages they earned whether the employee works on an hourly or salaried basis. Failure to pay wages can violate Texas Payday Law and the Fair Labor Standards Act (FLSA). Similarly, failure to pay earned commissions can result in violating labor and contractual laws, depending on the employment relationship.
An employer may pay employees at a maximum interval of once a month in Texas. When an employee’s employment ends, an employer must provide the last paycheck within six (6) days to the employee. An employer who fails to timely pay an employee may violate the above-described labor laws.
First, the law defines a commission as a sum of money paid to an employee upon completion of a task, usually selling a certain amount of goods or services. An employer can pay an employee on straight commission or part salary and part commission. The law, not the employer’s preference, determines how an employer may pay an employee with relation to commissions. The determination is fact-intensive, and if you think your employer is not paying your commissions in accordance with the law, it is best to consult with an employment lawyer. Importantly, for employees of a retail establishment, overtime still applies to commissioned employees.
Much like wages, an employer must pay an employee the commissions they earned. Failure to pay an employee his or her commissions, can violate State and Federal wage laws.
Because commissioned workers at retail and service establishments who choose to pay commissioned employees on a salary must ensure the employees get overtime, the employer must keep very detailed records. Often, employers do not keep detailed records, and an employer can short change an employee on his or her overtime. Needless to say, employees may not even know they are being shorted pay because of the burdensome record keeping requirements.
If your employer has denied you your wages or commissions, or if you think your employer is not properly paying you, contact me to schedule a consultation. Employment laws in Texas only allow employees to go after lost wages for a short time, so if your employer has taken advantage of you, time is of the essence.
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