Unpaid Bonuses and Commissions: What Does the Law Say?
The following is not legal advice, but general information pertaining to Oregon wage law. You are not a client of Engrav Law Office unless you have entered into an engagement letter with the firm.
What Qualifies as a Commission or Bonus?
If your employer has failed to pay you a promised commission or bonus, you may have a legal claim for unpaid wages. In Oregon, both commissions and certain types of bonuses are considered wages when they are contractually promised or based on measurable performance criteria. Employers cannot arbitrarily withhold these payments, and if they do, you may be entitled to compensation, statutory penalty wages, and attorney fees under ORS 652.150.
What Qualifies as a Commission or Bonus?
- Commissions: Payments tied to sales or performance metrics that an employer has contractually obligated itself to pay. Under Martin v. DHL Express (USA), Inc., commissions are deemed earned when the employee fulfills the required conditions, and an employer’s attempt to withhold payment may constitute an unlawful wage violation.
- Bonuses: If a bonus is contractually promised and tied to objective performance criteria (e.g., revenue targets, individual or company performance), it qualifies as wages under Oregon law. However, under Thompson v. Burr, purely discretionary bonuses that an employer awards without obligation do not constitute wages and are not legally enforceable.
Can My Employer Refuse to Pay My Earned Commission or Bonus?
No. If you have met the conditions outlined in your employment agreement, commission plan, or bonus structure, your employer’s refusal to pay constitutes a wage violation. Common employer tactics to avoid payment include:
- Claiming the company didn’t make enough revenue despite the employee satisfying the commission or bonus conditions
- Retroactively modifying commission or bonus criteria to avoid payment
- Terminating employment before payment is due to circumvent obligations
- Misclassifying a performance-based bonus as discretionary to evade liability
Oregon law does not permit employers to unilaterally alter or negate earned compensation, and courts have consistently held that an employer’s financial condition does not excuse nonpayment (Martin v. DHL).
What Are My Legal Options?
Under Oregon’s wage laws, an employee can recover unpaid commissions or bonuses through:
- A wage claim with the Oregon Bureau of Labor and Industries (BOLI)
- A civil lawsuit, which may entitle you to unpaid wages, penalty wages, and attorney fees under ORS 652.200
Engrav Law Office has successfully litigated high-stakes wage disputes, including Larsson v. DXC, a significant case in Oregon wage claim litigation that reinforced employees’ rights to recover unpaid compensation. Our firm understands the complexities of wage claims and aggressively pursues employer accountability.
Get Legal Help Today
If your employer has failed to pay you a commission or bonus, you have legal rights. Engrav Law Office represents employees in wage disputes and has a proven record of success in wage claim litigation. Contact us today for a consultation and let us fight for the compensation you are owed.
Call Engrav Law Office Front Desk to Schedule a no-cost initial consultation. 971-339-2741
