The New Jersey Employment Law Firm Blog
For employees who earn commissions, a recent decision by the New Jersey Supreme Court has provided crucial clarity and protection. In the case of Musker v. Suuchi, Inc., the state’s highest court unequivocally held that commissions earned for labor or services rendered are indeed “wages” under the New Jersey Wage Payment Law (“WPL”). This ruling overturns a prior Appellate Division decision and reinforces the broad protections afforded to employees under the WPL.
The Backstory: Commissions on PPE Sales Sparks Legal Battle
The case arose when Rosalyn Musker, a sales employee of Suuchi, Inc., sought commissions for her sales of personal protective equipment (PPE) during the COVID-19 pandemic. After Musker successfully generated significant revenue through these sales, a dispute arose regarding the amount of commission she was owed and whether these commissions qualified as “wages” under the WPL.
The trial court initially sided with the employer, arguing that the PPE commissions were “supplementary incentives” designed to motivate Musker beyond her regular duties and were therefore excluded from the WPL’s definition of wages. The Appellate Division affirmed this decision.
The Supreme Court’s Decisive Ruling: Commissions are Wages, Not Just Incentives
In a clear and unambiguous opinion, the New Jersey Supreme Court reversed the lower courts’ rulings. Justice Fasciale, writing for the Court, emphasized the plain language of the WPL, which defines “wages” as “direct monetary compensation for labor or services rendered by an employee, where the amount is determined on a time, task, piece, or commission basis.”
Why This Ruling Matters for New Jersey Employees
This decision is a significant victory for employees in New Jersey who are compensated, in whole or in part, through commissions. By affirming that commissions are “wages,” the Supreme Court has ensured that they will be subject to the timely payment requirements and other safeguards of the WPL. Employers now cannot arbitrarily withhold earned commissions without facing potential legal consequences.
If you believe your earned commissions have been improperly withheld by your employer, it is crucial to understand your rights under the New Jersey Wage Payment Law. Contact the Resnick Law Group today at (973) 781-1204 for a confidential consultation to discuss your situation and explore your legal options.