questions & answers

Question: During my current 6 months of employment, I was hired as a 1099 employee and then transitioned to a W2 employee (paid salary + commission)and then forced back to a 1099 employee by my employer. Despite earning commissions from the first month of employment, I have yet to be paid any commissions. They initially told me I they would pay them and then they ignored by requests for payment. Can an employer withhold and deny paying earned commissions and if so, how long. Are they subject to any penalties or fines for will fully with holding earned commission? What can I do?

Answer: When wages owed to an employee are no more than $5,000.00 and the accrual of those unpaid wages does not exceed one year, the employee may file a wage claim with the Department (A.R.S. § 23-350 et seq.). Upon receipt of a claim, the Department will notify the employer of the claim and investigate the case. After investigation of the claim, the Department will provide a written determination which can only be appealed to Superior Court. An employer who does not comply with a Final Order within ten days after the Order becomes final and is liable for triple the amount of the unpaid wages found to be owed. Employees also have the option of filing in the civil courts; however, an employee cannot file with both the State Labor Department and the civil courts.