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Unpaid commissions in Montana: earned is earned

Commissions earned before separation are wages and follow the same deadline.

Employers usually argue the commission was not "earned" yet. The answer is in the plan's own words: if every condition the plan sets had been satisfied before you left, the timing clause moves the payment date, it does not erase the debt.

Statute
Mont. Code § 39-3-205; § 39-3-206 (penalty)
If fired
Unpaid wages are due 15 days from the separation date, or on the next regular payday for that pay period, whichever comes first (Mont. Code § 39-3-205).
If you resigned
Resignation falls under the same rule: 15 days from separation or the next regular payday, whichever is earlier (Mont. Code § 39-3-205).
Late-pay penalty
Montana provides a penalty for failure to pay at the time required (§ 39-3-206), but the statute does not set a formula that can be computed from the wages alone; the amount is determined in the proceeding.
PTO
Montana requires payout of accrued vacation only where the employer's written policy or agreement creates the right.
Small claims limit
$7,000 for an individual
Last verified
2026-11-03 single source

What to put in the file before you write anything

  1. The commission plan or comp letter, including every amendment, and the exact definition of when a commission is earned.
  2. Deal records showing the sale closed, the customer paid, or whatever condition the plan requires.
  3. A calculation of each commission claimed, with the deal, the rate and the date the condition was met.
  4. Any email where a manager confirmed the amount — the most persuasive document in most commission disputes.

What the letter does that a phone call cannot

A demand letter fixes three things at once: the amount, the date each item was due, and the date the employer was on notice. Every forum that can help you — the Montana Department of Labor & Industry — Employment Relations, a small claims judge — starts from those three facts. The letter is built from Mont. Code § 39-3-205; § 39-3-206 (penalty) and your own figures, so the deadline it states is the one that applies to your separation, not a generic thirty days.

If the amount fits inside $7,000, small claims court is usually faster than an agency queue; if it does not, the agency route and a demand first is the cheaper path.

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Questions

Are commissions wages in Montana?

Commissions earned before separation are wages and follow the same deadline.

My employer says commissions are paid only to current employees. Is that enforceable in Montana?

A clause that forfeits commissions already earned is the clause most often struck down when challenged. The employer can usually set the timing of payment; it is much harder for it to keep money the plan says you earned.

Other situations in Montana

being fired · resigning · a layoff · unused PTO · all Montana rules

Reviewed 2026-11-03 against the sources listed on the Montana page. This is a self-help document tool, not legal advice, and no outcome is guaranteed.