What are the rules governing the payment of employee commissions?

In West Virginia, payment of employee commissions is regulated by the Labor Law §21-5A-5. This law sets out the requirements for employers who pay their employees in terms of commissions. First, employers must provide a written agreement that outlines the terms and conditions of the commission-based compensation. This agreement must be written in clear language and must include detailed information about the commission, such as the manner in which it is earned and any other conditions attached to the commission. Second, employers must pay employees a minimum of twice per month. Commissions earned between the first and fifteenth of the month must be paid on the last day of that month. Commissions earned from the sixteenth of the month onward must be paid by the fifteenth of the following month. Third, employers are not allowed to deduct any taxes or other fees, such as health insurance, from the commission. Any such deductions must come from the employee’s base salary. Finally, employers are required to keep records of any commissions earned by the employee for at least three years. These rules help ensure fair payment of commissions to West Virginia employees, and employers should be aware of their legal obligations when offering commission-based compensation.

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What are the rules governing the payment of employee commissions?

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