Ask Atlas · Wages and hours
What does federal law say about when promised commissions must be paid?
United States — limited federal general information
Published · Reviewed by Ahmad Sulaiman
The federal Fair Labor Standards Act (FLSA) does not require employers to pay commissions, and it does not provide a wage-payment or collection procedure for an employee’s usual or promised commissions above the amounts the FLSA requires.[1] [2]
The U.S. Department of Labor’s FLSA guide says wages required by the FLSA are due on the regular payday for the pay period covered, but that federal statement does not set a general payday for promised commissions above FLSA-required amounts.[2]
The guide says some states have laws under which claims for those commissions may be filed; identifying a particular payment rule requires the work jurisdiction and the terms that describe when the commission is earned or payable.[2]