[MD] Can I recover unpaid sales commissions after job termination?

MD Employment

Lori

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Under the Maryland Wage Payment and Collection Law (MWPCL), commissions are considered “wages” if they are: (MD Labor and Employment Code § 3-501)

Earned through work performed prior to termination
Promised in writing or implied through consistent practice
Not subject to a bona fide dispute (i.e., a legitimate disagreement over entitlement)

Your written offer letter specifying a 5% commission on “sales” strongly supports your claim. Maryland courts have held that:

If an employee completes the services required to earn a commission before termination, the employer must pay it, even if the sale is later canceled or the project is not completed.
Employers cannot retroactively impose conditions (like project completion) if those were not part of a signed agreement.
If the employer fails to pay, you may be entitled to up to 3x the unpaid amount in liquidated damages, plus attorney’s fees and court costs, unless they can prove a bona fide dispute.

Key Facts Supporting Your Claim

You secured a signed contract and the company began fulfillment (re-measure, deposit).
You were paid half the commission, indicating recognition of the sale.
No written commission agreement exists to override the offer letter. Cancellation occurred after the statutory cancellation period, and you were not notified.
Your role was tied to sales, not project execution.
These facts suggest you earned the full commission and that the employer’s cancellation—especially without notice — does not negate your entitlement under Maryland law.

Recommended Next Steps

Send a Formal Demand Letter. Outline the facts, cite the MWPCL, and request payment of the remaining commission. Include:
- A copy of your offer letter
- Timeline of events
- Proof of partial commission payment
- Statement that no bona fide dispute exists
- File a Wage Claim with the Maryland Department of Labor
- You can initiate a claim through their official portal.
Recovery of Attorney's Fees:
- If you have a written agreement or offer letter that allows for recovery of attorney’s fees in a dispute, then a claim for attorney’s fees can be added to your claim. (MD Labor and Employment Code § 3-507.2)

Unpaid Wages Demand Letter

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I have a question about wage law. I have a dispute over whether my commission is due to me. I terminated my employment with them as of August 29th, 2025.

Lexi, Chatbot

I understand that dealing with wage disputes can be very stressful. Can you tell me if you have a written agreement regarding your commission structure?

I have no written agreement. What I have is an offer letter from her when the position was offered to me stating that I would be paid a base salary and a standard 5% commission on all sales. This was sent via email.

Lexi, Chatbot

Have you already discussed this issue with your former employer, and if so, what was their response?

Yes, in detail and at length. Her position is that she will not pay it.

Lexi, Chatbot

Is there anything else the employment lawyer should know before I connect you? Rest assured they'll be able to help with your commission dispute.

Yes

I'm seeking legal advice regarding an unpaid commission from my former employer following the termination of my employment.

My compensation included a base salary and a standard 5% commission on all sales, as stated in my written offer letter. There is no signed commission agreement that outlines conditions for payment, cancellation, or project completion.

The dispute centers on a residential remodeling project I secured with a client (referred to here as the "[Redacted] project"). I drafted a contract that was signed by the clients and accepted by the company. My employer began fulfilling its obligations by conducting a re-measure appointment and collecting a deposit. These actions, along with the fact that I was paid the first half of my commission, confirm that the sale was considered valid and commissionable.

At some point after these steps, she canceled the contract—apparently after the stipulated cancellation period. I was never informed of the cancellation by my direct supervisor, nor was any reason provided. There was no communication regarding how this would affect my compensation.

I believe I earned the full commission based on my performance in securing a signed contract. It's important to note that my offer letter refers to commission on "sales," not on completed projects. A completed sale and a completed project are not the same, and my responsibilities were tied to securing signed agreements—not overseeing installation.

I'm requesting the remaining portion of the commission and would like to understand my legal options under Maryland labor law, including potential recovery of wages and attorney's fees.

Lori

Hello. I'm here to assist. My name is Lori and I am on live with you today.

What city/state is the employer located in?

We are in Baltimore, Maryland.

Lori

Under the Maryland Wage Payment and Collection Law (MWPCL), commissions are considered “wages” if they are: (MD Labor and Employment Code § 3-501)

Earned through work performed prior to termination
Promised in writing or implied through consistent practice
Not subject to a bona fide dispute (i.e., a legitimate disagreement over entitlement)

Your written offer letter specifying a 5% commission on “sales” strongly supports your claim. Maryland courts have held that:

If an employee completes the services required to earn a commission before termination, the employer must pay it, even if the sale is later canceled or the project is not completed.
Employers cannot retroactively impose conditions (like project completion) if those were not part of a signed agreement.
If the employer fails to pay, you may be entitled to up to 3x the unpaid amount in liquidated damages, plus attorney’s fees and court costs, unless they can prove a bona fide dispute.

Key Facts Supporting Your Claim

You secured a signed contract and the company began fulfillment (re-measure, deposit).
You were paid half the commission, indicating recognition of the sale.
No written commission agreement exists to override the offer letter. Cancellation occurred after the statutory cancellation period, and you were not notified.
Your role was tied to sales, not project execution.
These facts suggest you earned the full commission and that the employer’s cancellation—especially without notice — does not negate your entitlement under Maryland law.

Recommended Next Steps

Send a Formal Demand Letter. Outline the facts, cite the MWPCL, and request payment of the remaining commission. Include:
- A copy of your offer letter
- Timeline of events
- Proof of partial commission payment
- Statement that no bona fide dispute exists
- File a Wage Claim with the Maryland Department of Labor
- You can initiate a claim through their official portal.
Recovery of Attorney's Fees:
- If you have a written agreement or offer letter that allows for recovery of attorney’s fees in a dispute, then a claim for attorney’s fees can be added to your claim. (MD Labor and Employment Code § 3-507.2)

What does "statement that no bona fide dispute exists" mean?

Lori

This phrase is pivotal in Maryland wage claims. A “bona fide dispute” refers to a legitimate, good-faith disagreement between the employer and employee about whether wages are owed. It’s not just any excuse—it must be based on a real, fact-based conflict, such as:

A genuine misunderstanding of the terms of compensation
A documented disagreement over whether the employee met the conditions to earn the commission
A credible claim that the sale was invalid or canceled within allowable terms

If no bona fide dispute exists, it means:

The employer has no valid reason for withholding payment
The facts clearly show the wages were earned and payable.

We do have several emails back and forth where I continuously defend my belief that the remainder of my commission should be paid, and my employer clearly disagreeing with my statement. Is that considered a bona fide disagreement?

Lori

He can dispute it, but if the employer does not have a valid legal reason to withhold payment, then there is no conflict.

Okay. Two more questions I can think of: In my demand letter should I state that I will seek additional money up to 3x the amount plus attorney fees, or wait until she declines? Also, can I just go straight to filing in court instead of going through DLLR first? Or must I go through the Maryland Department of Labor (DLLR) first? I am really frustrated at this whole ordeal with her.

Lori

Yes, we want to send the demand letter and wait to see if there is a response. It is recommended that you put a deadline in the letter. Then you can pursue your legal remedies. The Maryland Department of Labor (DLLR) claim and litigation can be filed at the same time.

Ok. How does filing with the Maryland Department of Labor (DLLR) work? Do they work with the litigator? If I file both at the same time, how does that work?

Lori

No. You file it separately. To file a wage claim with the Maryland Department of Labor (DLLR) for unpaid commissions:

Complete the Wage Claim Form. Download and fill out the official form:
- Maryland Wage Claim Form (PDF)
- Be thorough and sign under oath
- Attach all supporting documents
Submit Your Claim
- Mail your completed form and attachments to: Employment Standards Service (ESS)
- Address: Maryland Department of Labor, 10946 West Golden Drive, Suite 160, Hunt Valley, MD 21031
- You can also call 410-767-2357 or email dldliemploymentstandards-labor@maryland.gov for assistance.

Okay, I believe that sums up the questions I had. I appreciate your help.

Lori

You are welcome.

Lori

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