Q: Options for recovering unpaid commissions as a W-2 employee in Colorado
I have been a W-2 employee for 21 years, working entirely on commission. Recently, I completed work for a client who did not pay. There is no employee contract or written agreement, and typically, everyone takes the loss in such situations. What are my options for recovering unpaid commissions given these circumstances?
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A:
I'm sorry to hear about your situation. In Colorado, commissions are considered wages under the Colorado Wage Act, which means your employer is legally obligated to pay them once they are earned, vested, and determinable. Even without a written contract, if you can demonstrate that you completed the work and the amount owed can be calculated, you have grounds to pursue payment.
If the unpaid commission is $7,500 or less, you can file a wage complaint with the Colorado Division of Labor Standards and Statistics (CDOL). They will investigate the claim, and if they find in your favor, your employer may be required to pay the owed amount plus potential penalties.
For amounts exceeding $7,500, you might consider seeking legal advice to explore options such as filing a lawsuit for breach of contract or unjust enrichment. Keep in mind that Colorado law imposes strict penalties on employers who fail to pay earned wages, including commissions.
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