Knowledge Base
New York Sales Commissions Law
If you sell for a living in New York, the commissions you earn are protected by law. How they are protected depends on one question: are you an employee who gets a W-2, or an independent contractor who gets a 1099? The rules, the deadlines and the remedies are different. Start by finding your track.
Which track are you on?
- If you get a W-2
- Taxes come out of your pay. You may have a base salary, a draw, or commission only. Go to the guide for employees.
- If you get a 1099
- Two different laws apply, depending on what you sell. The guide for independent reps sorts that out.
- If you get a 1099 but the company runs your day
- Set hours, set prices, a required CRM, no freedom to sell for anyone else: you may be an employee no matter what the paperwork says. Start with "Am I really an independent contractor?"
Five things every New York salesperson should know
- An earned commission is a wage. For an employee, it has the same protection as a paycheck (Labor Law § 190(1)). For a contractor, it is a debt the company owes. Either way, the company cannot simply keep it.
- What you did, and when, usually decides the case. A commission is generally earned when your sales work is done, with or without a written plan. A deal you completed before leaving is yours even if the customer pays later (Pachter; Arbeeny).
- A plan cannot forfeit a commission you already earned. Parties are "not free to enter into contracts which violate public policy," so earned wages cannot be contracted away (Weiner).
- The law requires a writing. Employers must give commissioned employees a signed written plan (§ 191(1)(c)). Wholesale reps are entitled to a written contract (§ 191-b). Most other freelancers earning $800 or more are too.
- Some deadlines are short. 180 days to put company owners on notice. Two years for retaliation, and for a freelancer's missing-contract claim. Six years for most New York wage claims.
The cases
Every decision cited in this guide is here in full, with its complete citation and a free PDF marked with official reporter page numbers, so you can quote a passage and cite it the way a court does.
This page is general information about New York and federal law, last reviewed September 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Dollar figures and deadlines change. If a deadline may be close, speak with a lawyer now.