Getting Paid: Bonuses, Wages and Commissions

Under California statutory law, “wages” enjoy a very broad definition. Case law has included “bonuses” in the definition. Why does that matter to California employees?

If you are discharged, any wages you have earned up to and including the date of termination are due and payable – immediately on the date of termination. Employees who find themselves in the regrettable situation of being let go or fired (or even in need of quitting) should expect payment in full of all wages earned prior to signing any release, etc. California employers who fail to pay wages in a timely manner (that is, on the date of termination) can find themselves subject to waiting time penalties, interest and/or attorney’s fees.

Waiting Time Penalties: California employers who fail to pay wages due an employee on the date of their termination “willfully,” the wages of said employee will continue as a penalty from date of termination (at the same rate) until paid or other appropriate action is taken.

Interest: The court awards interest on all due and unpaid wages at an annual rate of 10% accruing from the date wages were due/payable.

Attorney’s Fees: When action is brought for nonpayment of wages, benefits, etc. reasonable attorney’s fees can be awarded to the prevailing party by the court.

California law has employees leaving a job covered. There should be no reason to lose wages already earned. There should not even be a reason to wait for wages already earned.

To resolve non-payment issues with previous employers quickly and professionally, contact Blumenthal, Nordrehaug & Bhowmik. 

Unpaid Commission: Can it Be Recovered?

Most feel they have a solid understanding of overtime pay and whether or not they are receiving what they deserve, but when it comes to commissions, there seems to be additional confusion. What is unpaid commission and when is an employee able to recover unpaid commission?

What is Unpaid Commission?

Before we can define unpaid commission, it’s important to define commission wages in general. Commission wages are common in many industries, but prevalent in the computer and technology industries particularly. According to California wage law, commission wages refers to compensation that is paid as a percentage of the price of the product or service that is being sold. Commissions can also be based on the number of items sold. Disputes regarding commission wages and unpaid commissions are often resolved under the same legal principles as bonuses.

When are commissions “unpaid?” The easy answer is that commissions are classified as unpaid when they have been earned and never received. Technically the commission is earned by the employee who “procures cause” for the sale or other event resulting in commission pay. Disputes often arise when management intervenes during the sales process. When management is involved at some point during a sale, it is important to note the point at which someone procures cause for the sale and who was handling the customer at that point in time. This is the individual who has technically earned the agreed upon commission.

Obtaining Unpaid Commission:

If you feel you are entitled to commission that you never received, seek legal counsel. Employers frequently change compensation plans, utilize unfair provisions and/or adopt a very narrow interpretation of a commission agreement or plan. In some cases, employers are forced to seek unpaid commission post-employment. It’s important to note that employees who no longer work for a company can still be due commission on sales procured during their employment. Employers can’t reap the benefit of your efforts while simultaneously ignoring the agreement to provide you with a commission for those same efforts.

Employers will often work their compensation plans in various ways in order to justify commission forfeiture with little to no cause. Examples include employers who add verbiage making commission payment “exclusive” to current employees or allowing the employer to alter the commission agreement in certain situations, etc. California wage laws can help former and current employees recover commissions. The courts may see the commission agreement differently than your employer.

Call Blumenthal, Nordrehaug & Bhowmik today and find out how your unique circumstances can be taken into consideration when attempting to obtain unpaid commissions. 

When Should Employees Get Overtime Pay?

Federal law regulates overtime pay requirements. According to federal law, employees who work more than 40 hours in one week should receive one and a half times their normal pay rate for the “overtime” hours. As is often the case, there are exceptions to this law, but it’s important for employees to question their situation due to the fact that employers often misunderstand the rules or misapply them in specific circumstances – most often at the employee’s expense.

If you are an employee that works more than 40 hours and week without overtime pay, your employer could be in violation of the Fair Labor Standard Act. If an employer is in violation of this law, you could be entitled to the amount owed to you as well as additional funds to cover liquidated damages and attorney’s fees.

Define Your Employee Classification and Job Duties:

There are two categories of employees: exempt and nonexempt. The Fair Labor Standard Act (FLSA) doesn’t cover exempt employees. Federal law does not require employers to provide exempt employees with overtime pay. Exempt employees are often in managerial positions. They can receive pay on a salary basis or as an hourly wage. They have independence in their job duties and authority over their own work. Exempt employees are involved with creating/applying workplace policies and have some responsibility for making decisions within the company framework.

It’s important to consider exempt status because employers will often categorize employees as exempt inaccurately. For example, an employer could provide an employee with the title of Assistant Manager, but fail to provide the employee with any authority or responsibility for other employees. Another example is when employers categorize an employee as an independent contractor, but their day-to-day job duties more closely resemble those of a normal employee.

If you are an employee who does not receive overtime pay it’s important to define your status: exempt or non-exempt. This will determine whether or not your situation is governed by the FLSA. If you are misclassified as exempt, you can fight to get the compensation to which you are entitled by federal law.

Employers subject to the Fair Labor Standard Act aren’t permitted to exchange personal days or other extra benefits for overtime pay. Employers are also not allowed to have mandatory meetings that occur when employees are officially “off.” As an employee, you are entitled to the pay you have earned. When you put in extra hours, you are entitled to extra pay. If your employer doesn’t pay you overtime (to which you are legally entitled through the Fair Labor Standard Act), contacting an expert in unpaid overtime is the most appropriate step towards resolution.

Blumenthal, Nordrehaug & Bhowmik helps you enforce your overtime rights. If your employer is knowingly and willingly refusing to pay you earned overtime pay, you are entitled to the amount owed. Call today to discuss your employment situation and see how you can get paid past due overtime wages. 

California Employment Lawyer

Our California employment lawyers understand that companies violate employee rights and leave workers feeling like they have no where to turn for help. Employees throughout the state of California - from Los Angeles to San Francisco - have been relying on our employment law firm for over 30 years in lawsuits involving illegal employment law practices such as wrongful termination laws, discrimination laws, retaliation laws, overtime pay laws and many other types of Labor Code violations.

In the process of helping employees fight back against illegal employer practices, our California employment attorneys have obtained over $1.3 billion in settlements and judgements for workers throughout the state. Our employment lawyers take cases for employees only and work on a contingency fee basis, meaning employees never pay our attorneys a dollar unless we win money for you. Most importantly, we have helped millions of workers throughout California get back on their feet through individual and class action lawsuits.

3 Secrets About Hiring California Employment Lawyers

There are three important things that employees must consider before hiring a California employment attorney. First, the employee needs to understand how the law firm makes its money. On the one hand, an employee with resources and money may want to hire an hourly employment lawyer. On the other hand, an employee who lacks resources and wants to sue a big company for employment law violations may want to hire a contingency fee lawyer. The benefit of hiring a contingency fee employment lawyer is that the lawyers don’t make money unless the employee makes money and the attorneys are motivated to spend time and effort on the lawsuit.

The second important factor involves location. For example, employees may want to make sure that the California employment law firm they are hiring has a specific attorney in the same city as the employee who will be the lead attorney in the lawsuit. This allows employees to visit with the California employment lawyer in person for a free consultation and for the actual process of the litigation. While most matters can usually be handled over the phone, sometimes employees prefer to actually have a sit down meeting with their employment law attorneys.

The third important thing that employees must consider before hiring an employer lawyer in California is whether or not the firm has a good reputation. In litigation, there are never any guarantees of course. However, as a general rule, history tends to repeat itself and there is no special exception when it comes to hiring California employment lawyers. Employees may therefore want to review the employment law firms record of settlements and judgments to see if the firm has won any big cases. An employee may also want to read reviews about the California employment lawyers to assess whether the firm is known for providing its clients with excellent customer care.