The Illinois Wage Payment and Collection Act (IWPCA) governs the timely and complete payment of wages, including earned bonuses and commissions. Once an employee has met the conditions necessary to earn a bonus or commission, the employer is legally obligated to pay it. This obligation applies whether the employee is still employed or has resigned or been terminated, unless a valid written agreement specifies otherwise.
Some employers argue that bonuses are “discretionary,” even when promised with specific terms in offer letters, performance reviews, or sales incentive plans. Others retroactively change commission terms, impose new hurdles after the work is done, or delay payments until a later fiscal period—tactics that may violate the law. In addition, if the employee earns overtime, commissions and some bonuses must be factored into your rate of pay in order to calculate your overtime rate.
In sales and performance-driven environments, commissions are typically earned when the sale is made, not when the customer pays or the accounting department processes the invoice. Courts look to the agreement between the parties to determine when a commission is “earned.” If the employee has fulfilled their part of the bargain—by closing the deal, for example—the commission is generally owed. Attempts to deny payment due to technicalities, customer complaints, or “clawback” provisions may be unenforceable under Illinois law.
If your employer has failed to pay you a promised bonus or commission, has not factored your additional compensation into your overtime rate, or is consistently paying your commission late, you may have legal claims. Contact Caffarelli & Associates for a confidential consultation. We’ll evaluate your situation, explain your rights, and help you pursue the compensation you deserve. You did the work—now let us help you get paid for it.
