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Employment Litigation › Sales Commissions › Compensation & Benefits

Seyfarth Shaw LLP

New Jersey Supreme Court Finds Commissions Are Considered “Wages” Under State Law

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On March 17, 2025, the New Jersey Supreme Court ruled that commissions are considered “wages” under the New Jersey Wage Payment Law (“NJWPL”). This critical decision clarifies that commissions are direct monetary compensation...more

Seyfarth Shaw LLP

Asking Again-Do You Really Want to Keep Paying Commissions to the Salesperson You Fired? (Update)

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We previously wrote about the procuring-cause doctrine here. As a refresher, the procuring-cause doctrine provides that a salesperson or other agent who contracts for a commission becomes entitled to payment of the commission...more

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First Circuit Finds Commission Plan’s Windfall Provision Permissible Under Massachusetts Wage Act

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In Klauber v. VMWare, the First Circuit upheld an employer’s use of a provision in its compensation plan that allowed it to modify commissions on certain large or atypical sales. These “windfall” clauses are common in sales...more

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