Understanding Your Right to Commission Payments in Massachusetts

If you’re working in Massachusetts and earn commissions as part of your compensation, it’s essential to know your rights—especially when it comes to when and how those commissions must be paid. In this blog, we’re unpacking the rules surrounding commission payments and how the law protects you.

What Counts as a Commission?

In Massachusetts, a commission is a form of wage compensation typically based on a percentage of sales or profits. For example, if you’re in sales, real estate, or finance, your commission may be calculated based on completed transactions or revenue you bring in.

It’s important to understand how your employment agreement defines commissions—when they’re earned, what triggers payment, and whether there are conditions you must meet (such as being employed on the payment date).

When Are Commissions Due?

Under the Massachusetts Wage Act (M.G.L. c. 149, § 148), commissions are considered wages if they are “definitely determined” and “due and payable.”

Let’s break that down:

Definitely determined means the amount of the commission can be calculated based on agreed terms.

Due and payable means all the conditions for earning the commission have been met.

Once both conditions are satisfied, the commission must be paid on the next regular payday. This applies even if you’re no longer employed, assuming you’ve met all conditions for earning the commission.

What If You’re Terminated or Resign?

If you leave your job—whether by resignation or termination—you may still be entitled to commission payments. However, the key factor is whether the commission was earned during your employment. That depends on:

The terms of your contract, and
Whether the conditions for payment were met before or during your employment.

Massachusetts courts have enforced payment even after termination if the commission was “definitely determined and due” while the employee was still on the job.

Legal Protections Under the Massachusetts Wage Act

The Massachusetts Wage Act provides powerful protections for employees:

Strict deadlines: Employers must pay all wages, including commissions, promptly. If you are discharged, wages are due on the day of termination.
Triple damages: If your employer violates the Wage Act, you may be entitled to three times the amount owed.
Attorney’s fees: If you win your case, the employer may be required to pay your legal fees.

These provisions apply even to commissions if they qualify as wages under the Act.