In Florida, commission-based employees often wonder if their employer can keep earned commissions. This question is important because commission payments directly tie to an employee’s performance. Understanding the rules surrounding commissions helps you protect your earnings and ensures you receive fair treatment.
What is a commission?
A commission is compensation paid to employees based on the sales or performance they generate for the company. These payments are common in industries like real estate, retail, and sales. Florida law governs the rules about when and how employers must pay commissions, influenced by both state and federal regulations.
Can your employer withhold commissions?
Generally, an employer cannot keep earned commissions once the employer has promised or the employee has earned them. If your commission depends on specific targets or sales that have already been completed, the employer must honor the agreed-upon payment. However, exceptions exist if the commission plan includes conditions that allow withholding in certain circumstances, such as contract violations or uncollected payments.
What happens if employers withhold commissions improperly?
If your employer refuses to pay earned commissions without a valid reason, the act may constitute wage theft. Florida law protects workers in wage disputes. Employees have the right to file complaints with the Department of Labor or seek legal recourse. It’s essential to understand your employment agreement and how the commission structure works to avoid confusion.
Florida’s commission laws ensure employers fairly compensate employees for their hard work, but they include specific guidelines about withholding payments, especially when conditions apply.
Understanding your rights helps protect your interests and guarantees fair compensation for your sales and performance.