Earned commissions are wages. Stiffing a sales rep doubles the bill.
For independent sales reps, Labor Law 191-c requires payment within five business days of contract termination and awards double damages plus attorney's fees for failure to pay on time. Employed salespeople get the full wage-law arsenal.
Flat fee $499, signed by a licensed New York attorney, draft within 48 hours, mailed on your approval.
Reviewed by Daniel Hochman, Esq. · Last updated November 1, 2026
Under Labor Law § 191-c, an independent sales rep's earned commissions are due within five business days after the contract ends, or when they come due if later. A principal who pays late owes double damages, and the prevailing party recovers attorney's fees, court costs and disbursements; the text has no willfulness element. Commissioned employees are covered by the wage laws instead, with 100% liquidated damages.
Written or provable commission terms are required: upload the contract, comp plan, or consistent pay history. Purely discretionary bonus claims and equity disputes are screened to consultation as the terms describe. Background reading from the firm: unpaid commissions in New York.
The five day rule
All earned commissions are due within five business days after termination of the contract, or after they become due if later.
Lab. L. § 191-c(1)
Double damages plus fees, by plain text
A principal who fails to pay timely is liable for double damages, and the prevailing party recovers attorney's fees, court costs, and disbursements. The statute's text has no willfulness element; missing the deadline is the violation.
Lab. L. § 191-c(3)
Employees are covered too
Commissioned salespersons who are employees hold their commissions as protected wages with the full 100% liquidated damages framework.
NYLL §§ 191(1)(c), 198
Questions before you start
I'm an independent contractor, not an employee. Am I covered?
That's exactly who 191-c protects: independent sales representatives. Employees are covered by the wage articles instead, and the intake branches accordingly.
What if my contract lets them claw back commissions?
Chargebacks turn on what the contract says. Describe it at intake and upload it if you have it, to back up your answers; where the agreement genuinely makes earning ambiguous, attorney review will say so before drafting, as the terms describe.
Statutes cited on this page
Labor Law § 191-c (Labor Law)
Labor Law § 191(1)(c) (Labor Law)
Each link opens the official text at the New York State Senate's Open Legislation site (federal sections: Cornell Law School's U.S. Code).