Many employers make the mistake of not paying out their employees commissions in a timely manner, which may lead to significant liability for relatively small infractions. The key law that governs payment of wages and commissions in California is Labor Code §204. Generally, employees (with few exceptions) must be paid twice a month or more often. This must also include any commissions earned. A common mistake for employers is to wait to pay out commissions till the end of the month. Thus, in a recent case, a Sacrament beverage distributor had to pay over $100k in PAGA settlement, penalties and attorneys fees for not paying their 68 account managers their commissions in a timely manner. The rule for employees who are paid weekly is very different and they must generally be paid no later than seven days after the end of their pay period. (section 204(b))
Notable exceptions to the above rule are licensed car dealerships and licensed hair / cosmetology salons, which are allowed to pay their sales reps commissions once a month on a previously designed day for making such payments.
A collective bargaining agreement supersedes the above rules, i.e. employer and its employees can agree on a different schedule of commissions payment through a union agreement.