<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=690758617926394&amp;ev=PageView&amp;noscript=1">
The Complete Payroll Blog

NYS Employment Law - Paying a commissioned salesperson

Posted by CJ Maurer | Apr 26, 2016 10:32:57 AM

NYS Employment Law - Paying a commissioned salesperson

In New York, how frequently you’re required to pay a worker depends on how that worker is classified. It’s all outlined in Labor Law Section 191.

Who is considered a commissioned salesperson?

There are two simple ways to determine who is considered by law to be a commissioned salesperson…

  1. Their principal activity is selling any “goods, wares, merchandise, services, real estate, securities, insurances or any article or thing” and…
  2. Their earnings are based in whole or in part on sales commissions.

Yes, it sounds pretty straightforward.

However, the term “commissioned salesperson” does not include an employee whose primary duties are of a “supervisory, managerial, executive or administrative nature” even if that employee also engages in the sales of goods and/or services.

How often do I have to pay a commissioned salesperson?

In New York, you can write your own commissioned sales agreements to determine how to pay your commissioned salesperson.

However, you must still pay a commissioned salesperson at least once per month.

Furthermore, you must pay a commissioned salesperson on or before the last day of the month following the month in which the commissions were earned. For example, March 31st is the deadline to pay your commissioned salesperson the commissions they earned in February.

Bonuses or additional incentives beyond the base commission may be paid less frequently than once per month, however.

For more information, check out this resource from the New York State Department of Labor.

Or, if you’re still confused, or have a question, get in touch with us. We’d love to help you out!

New Call-to-action

Written by CJ Maurer

Professional communicator and connector. Fan of exercise, Indian food and the New York Mets.

Are you using our free resources?

We're constantly publishing free tools to help with payroll, HR and other administrative objectives.

New call-to-action
New Call-to-action

Subscribe to instant blog email notifications

Recent Posts

General Disclaimer

The materials and information available at this website and included in this blog are for informational purposes only, are not intended for the purpose of providing legal advice, and may not be relied upon as legal advice.  The employees of Complete Payroll are not licensed attorneys. This information and all of the information contained on this website are provided pursuant to and in compliance with federal and state statutes. It does not encompass other regulations that may exist, including, but not limited to, local ordinances. Complete Payroll makes no representations as to the accuracy, completeness, currentness, suitability, or validity of the information on this website and does not adopt any information contained on this website as its own. All information is provided on an as-is basis.  Please consult an attorney to obtain advice with respect to any particular question or issue.