New Jersey Supreme Court Unanimously Decides Commissions are Wages //

Kehoe Law Firm, P.C. is informing New Jersey employees that on March 17, 2025, the New Jersey Supreme Court (the “Court”) unanimously held that “commissions” are “wages” under New Jersey’s Wage Payment Law, N.J.S.A. 34:11-4.1-4.15 (“WPL”).

The WPL, according to the Court, “defines ‘wages’ as ‘direct monetary compensation for labor or services rendered by an employee, where the amount is determined on a time, task, piece, or commission basis.’ N.J.S.A. 34:11-4.1(c) (emphasis added).”

As such, according to the Court, “compensating an employee by paying a ‘commission’ for ‘labor or services’ always constitutes a wage under the WPL. Therefore . . . a ‘commission’ under the WPL cannot be excluded from the definition of ‘wages’ as a ‘supplementary incentive.’“

Key Facts Leading to the Court’s Decision that Commissions are Wages under NJ’s WPL

The plaintiff, Rosalyn Musker (“Musker”), worked in sales for defendant Suuchi, Inc. (“Suuchi”), a company that sells software subscriptions to apparel manufacturers. Besides her base salary, Musker was eligible for commissions under Suuchi’s Sales Commission Plan (“SCP”).

In March 2020, Suuchi decided to sell Personal Protective Equipment (“PPE”) on a commission basis, as documented in emails to the company’s sales team. Musker generated approximately $34,448,900 in gross revenue by selling PPE.

The legal dispute concerned whether the 4% commission Musker was entitled to for the PPE sales was of gross or net revenue, and both sides disagreed about whether Musker’s PPE commissions were “wages” or were excluded from the WPL as “supplementary incentives” under N.J.S.A. 34:11-4.1(c).

Musker filed a complaint which alleged that Suuchi violated the WPL by withholding her “wages.”

The trial judge dismissed the WPL claims, holding that Musker’s PPE commissions were not “wages” under the WPL; the Appellate Division affirmed; and the Court granted leave to appeal.

Key Points of The Court’s Opinion Finding Commissions are Wages 

According to the Court’s opinion syllabus:

• PPE sales required Musker to render “labor or services” as an employee of Suuchi;
• There is no dispute that Musker’s compensation for PPE sales was determined on a commission basis;
• PPE commissions earned by Musker solely because she performed “labor or services” were “wages” under N.J.S.A. 34:11-4.1(c);
• Merely because a product is new and potentially sold only temporarily does not mean that sales of that product in some way fall outside the regular “labor or services” an employee provides;
• Selling PPE became part of Musker’s job, and her compensation for performing that task remained a “wage” within the meaning of the WPL;
• Whether PPE compensation is governed by the SCP or the March 2020 emails regarding the sales of PPE, and whether the PPE commissions are based on gross or net revenue, is not relevant to the determination that the commissions are wages; and
• Receiving a base salary does not turn “commissions” into “supplementary incentives” under the WPL.

Source: Rosalyn Musker v. Suuchi, Inc. (A-8-24) (089665) 

New Jersey Employees Who Believe Their Employer Has Withheld or Refused to Pay Commissions

As the New Jersey Supreme Court unanimously decided, under New Jersey’s WPL, commissions are wages.

If you believe you are a victim of unpaid commissions, you may have legal claims and are encouraged to send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation legal evaluation.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

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