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Unpaid commissions in New Jersey: earned is earned

Commissions are expressly within the statutory definition of wages (N.J.S.A. 34:11-4.1); an incentive plan can set timing but cannot forfeit commissions already earned.

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
N.J.S.A. 34:11-4.3; § 34:11-4.10 (liquidated damages)
If fired
On a discharge, layoff or resignation, the employer must pay all wages due not later than the regular payday for the pay period in which the separation took place (N.J.S.A. 34:11-4.3). Payment may be by the usual channels or by mail if you ask.
If you resigned
Resignation is covered by the same provision: all wages due by the regular payday for the pay period in which you left.
Late-pay penalty
N.J.S.A. 34:11-4.10: a court may award liquidated damages equal to 200% of the unpaid wages, plus costs and attorney's fees.
PTO
New Jersey treats earned, unused vacation as wages: it must be paid at separation unless the employer's written policy clearly provides otherwise.
Small claims limit
$5,000 for an individual
Last verified
2026-11-03 two sources agree

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 New Jersey Department of Labor — Division of Wage and Hour Compliance, a small claims judge — starts from those three facts. The letter is built from N.J.S.A. 34:11-4.3; § 34:11-4.10 (liquidated damages) 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 $5,000, 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 New Jersey?

Commissions are expressly within the statutory definition of wages (N.J.S.A. 34:11-4.1); an incentive plan can set timing but cannot forfeit commissions already earned.

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

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 New Jersey

being fired · resigning · a layoff · unused PTO · all New Jersey rules

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