Can employer refuse to pay commissions after last day of employment?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can employer refuse to pay commissions after last day of employment?

I work as a sales consultant and receive a set
commission amount once a sale has gotten
released. If I have Sales that are pending
release after my last day, does my employer
have to pay me? I live and work in IN but my
employers corporate office is in KY.

Asked on May 12, 2018 under Employment Labor Law, Indiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Commissions are governed by the agreement between you and the employer. That agreement can be in writing; it can be an oral (unwritten agreement); or it can be demonstrated by past practice (what the employer has done previously). It would be legal to have an agreement under which you are only paid for sales completed, not pending, as of  your last day, or where you must be employed when the commission is paid in order for you to be paid, just as it conversely would be legal for you to be paid for commissions on sales you worked on while still employed, even if they were not complete when you left work. There is no answer about this set in the law; it depends entirely on the nature and terms of the commission agreement.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption