In Musker v. Suuchi, Inc., decided March 17, 2025, the New Jersey Supreme Court confirmed that commissions are treated as wages under the New Jersey Wage Payment Law.
The decision
The employer argued that commissions were supplementary incentives rather than wages. The Court rejected that position and held that standard commissions are wages under the statute, including commissions tied to new or temporary products.
Key points for employees and employers
- Compensation based on commission falls within the Wage Payment Law’s definition of wages.
- Only genuinely additional incentives outside the scope of regular work may fall within the narrower exception.
- Employers should review commission plans, contracts, and payment practices for compliance.
Steps for employees
- Review the written commission plan.
- Keep records of sales, revenue, and related communications.
- Compare pay statements and payment history against the plan.
- Seek advice if commissions have been reduced, withheld, or delayed.