Unpaid Sales Commissions: How to Get the Money You Earned

In sales, your commission isn't a "bonus" or a gift—it’s your wage. You traded your hustle, your sleep, and your weekends to close those deals. So when your employer suddenly changes the rules or "forgets" to pay a commission after you leave the company, it’s not just an oversight. It’s wage theft.

If you are staring at a commission statement that doesn't add up, or if your former boss is claiming you aren't "eligible" for a payout on a deal you closed, don't panic. You have more rights than you think.

Here is exactly how to handle a commission dispute and get the money you are owed.

Step 1: Audit Your Own Records

Before you confront your boss or HR, you need to be the expert on your own numbers. Employers count on sales reps being too busy to track every penny. Prove them wrong.

Gather your "Evidence Bundle":

Your Commission Agreement: This is the most important document. It’s the contract that says how and when you get paid.
Deal Documentation: Emails, CRM screenshots (Salesforce, HubSpot), and signed contracts for the deals in question.
The Calculation: Create a simple spreadsheet. "Deal A closed on March 1st for $50k. Per my contract, my rate is 5%. I am owed $2,500. I was paid $0."
Policy Changes: If the company changed the commission structure mid-quarter, find the email where they announced it. In many states, they cannot retroactively change your commission on deals you already closed.

Step 2: The "Informal" Check-In

Sometimes, it really is a mistake. Maybe the finance team missed a tag in the system. Start with a polite, written inquiry to your manager or the payroll department.

Example: "Hi Sarah, I was reviewing my latest commission statement and noticed that the Acme Corp deal from last month wasn't included. Based on the signed contract from Feb 15th, I believe I’m owed $1,800. Could you let me know when that will be processed?"

Keep this in writing (email). If they give you an excuse over the phone, follow up with an email: "Per our call, you mentioned the Acme deal is pending 'management approval.' My contract doesn't mention that requirement for payout. Could you clarify?"

Step 3: Send a Formal Demand Letter

If the informal check-in results in ghosting, excuses about "company policy," or a flat-out refusal, it’s time to escalate. This is where most sales reps stop because they don't want to "cause trouble." But remember: they are currently keeping your money.

A formal demand letter is a professional way to say, "I know my rights, and I’m not going away."

What your demand letter should include:

A clear reference to your written commission agreement.
An itemized list of the unpaid deals and the total amount owed.
A deadline for payment (usually 10 business days).
A mention of state labor laws. Many states (like California, New York, and Illinois) have very strict laws regarding "final commissions" and can penalize employers double or triple the amount owed.

Writing this yourself can be tricky. If you want a letter that looks like it came from a legal department, you can use howtowritea.com. For a small fee ($9 to $29), you answer a few questions about your sales and the platform generates a formal demand letter for you. It’s much cheaper than a lawyer and often more effective than an angry email.

Step 4: Know the "Procuring Cause" Rule

One of the most common excuses employers use is: "You left the company before the client paid, so you don't get the commission."

In many states, the "Procuring Cause" doctrine protects you. It basically says that if you did the work to close the deal, you are entitled to the commission even if you are no longer with the company when the money actually arrives. Unless your contract explicitly and legally waives this right, they likely still owe you.

Step 5: Escalate to the Labor Board or Court

If the demand letter doesn't work, you have two main options:

File a Wage Claim: Your state’s Department of Labor handles commission disputes. It’s free, but it can be slow (6-12 months).
Small Claims Court: If the amount is under your state’s limit (usually $5,000 to $10,000), you can sue them yourself. Your demand letter will be your "Exhibit A."

Why You Shouldn't Just "Move On"

Sales is a small world, and some reps worry that fighting for a commission will give them a "bad reputation." In reality, the opposite is true. Professionalism is about holding people to their word.

If you closed $100k in business and the company is keeping $10k of your commissions, that isn't a "misunderstanding"—it’s a $10,000 theft. You wouldn't let a stranger steal $10k from your bank account; don't let a former employer do it either.

Get your records together, be professional, and use a tool like howtowritea.com to send a formal demand. You did the work. Now go get paid.