Am I Entitled to Commissions If My Employment Ends?

If you are a salesperson and your employment ends — whether you were fired or left voluntarily — you may still be entitled to receive commissions for deals you closed or substantially worked on before your termination.

Under New York Labor Law, commissions are considered wages once they are “earned,” meaning the employee has completed the substantive work that generated the employer's right to receive customer payment. If your labor created the customer obligation, and only payment remains outstanding, the commission is generally considered earned — even if the actual customer payment occurs later.

Employers may not condition the right to earn a commission on continued employment after the work is already performed. Any attempt to retroactively deny payment for earned wages — including commissions — may violate NYLL § 193 (prohibiting unlawful deductions) and NYLL § 198 (permitting recovery of unpaid wages, liquidated damages, and attorney's fees).

Important Clarification: Independent Contractors vs. Employees

This page applies primarily to employees. If you are an independent contractor sales representative, different rules apply under NYLL §§ 191-a, 191-b, and 191-c, including:

• You are entitled to written contracts from the company detailing how commissions are calculated (§ 191-b).

• Once earned, commissions must be paid within five business days of termination or of the commission becoming due (§ 191-c).

• If the company fails to pay timely, you may be entitled to double damages, attorney's fees, and costs under § 191-c(3).

To determine your status, review whether you were classified as an employee or an independent contractor, and whether you were treated accordingly (e.g., tax withholding, benefits, control over your work).

Bottom Line:
Whether you're an employee or an independent contractor, if you did the work that generated the company's revenue, you are likely entitled to the commissions — and may have legal remedies if they are withheld.