Commissions Count as Wages: New Jersey Supreme Court Ruling Sends Wake-Up Call to Employers
Marissa Mastroianni authored an article that was published in American Bar Association’s TortSource.
It is well known that wage and hour violations are among the most expensive mistakes employers can make, often triggering costly lawsuits and hefty penalties. Therefore, employers must understand what qualifies as a “wage” under applicable federal and state law to avoid potential legal exposure. An employee’s salary and hourly compensation are widely accepted to be “wages” under federal and state law. Many employers, however, do not realize that additional forms of compensation, such as commissions and certain types of bonuses, can legally qualify as “wages”—bringing them under the protection of wage and hour laws.
A recent New Jersey Supreme Court decision highlights how many jurisdictions confer wage and hour protections to these supplementary forms of compensation. Namely, on March 17, 2025, the New Jersey Supreme Court unanimously held in Musker v. Suuchi, Inc. that “commissions” paid to employees for their labor or services “always constitute[] a wage” under the New Jersey Wage Payment Law (“NJWPL”). 260 N.J. 178, 181 (2025).
To read the full article, please click here.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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