Summary
Key Legal Holdings
- •Commissions are considered "wages" under the Wage Payment Law (WPL) and are subject to the WPL's protections.
- •Under the WPL's definition of "wages," compensating an employee by paying a commission for labor or services rendered always constitutes a wage. A commission cannot be excluded from the definition of wages as a "supplementary incentive.".
Material Facts
- •Plaintiff Rosalyn Musker worked in sales for defendant Suuchi, Inc. and was eligible for commissions under Suuchi's Sales Commission Plan (SCP).
- •In March 2020, due to the COVID-19 pandemic, Suuchi decided to sell Personal Protective Equipment (PPE) on a commission basis.
- •Musker generated approximately $34,448,900 in gross revenue by selling PPE.
- •The parties disputed whether Musker's PPE commissions were "wages" or excluded as "supplementary incentives" under the WPL.
Controlling Law
- •The New Jersey Wage Payment Law (WPL), N.J.S.A. 34:11-4.1 to -4.15.
Court RationaleThe WPL defines "wages" as "direct monetary ...