Chapter § 6-11 § 61.015. Payment of Commissions and Bonuses

• Jurisdiction: United States

6-11 § 61.015. Payment of Commissions and Bonuses

(a) Wages paid on commission and bonuses are due according to the terms of:

(1) an agreement between the employee and employer; or

(2) an applicable collective bargaining agreement.

(b) An employer shall pay wages paid on commission and bonuses to an employee in a timely manner as required for the payment of other wages under this chapter.

6-11:1 Commentary

One Texas court holds that there is no cause of action against an executive under Section 61.

• Abatement Inc. v. Williams, 324 S.W.3d 858 (Tex. App.—Houston [14th Dist.] 2010).

6-11:1.1 Ambiguity to Be Interpreted in Favor of the Employee

The issue of when a commission or bonus should be paid arises frequently. Employers and employees often spend inordinate amounts of time negotiating how the amount of a commission or bonus is to be paid, but little time on contingencies, such as payment when an employee leaves. If there is ambiguity in the agreement, the employee will get the benefit of the doubt.

• Jourdan v. Schenker Int'l, 275 F. App'x 371 (5th Cir. 2003) (agreement that employee was to be paid 10 percent commission on gross profits from any

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