Simple “Discretion” in a Commission Plan Insufficient
A discretionary clause cannot remove earned commissions from wage protection. The Massachusetts Wage Act protects money workers truly earn. For instance, Prudential Insurance created a plan that let it interpret rules. It also warned employees it might deny commissions after firing for cause. Yet, the court found this wording too weak because workers had already completed sales.
The Company Defense Failed
The brand argued plan discretion made commissions uncertain. Instead of checking sales facts, it tried to block payment. But courts ask one core question: Did the worker earn the money already? If the answer is yes, the law protects that pay.
McAleer Case Facts
On July 24, 2009, Mr. McAleer lost his job. By that date, he had finished pipeline sales. Normally, the company issued payouts months later. Still, the brand denied every earned sum, not only late payouts.
What the Court Confirmed
The court rejected the company’s argument clearly. Judges explained an important rule. Employers may hold discretion to check facts, confirm eligibility, and verify math. However, they cannot use discretion to block earned wages. Furthermore, the court noted that a plan must give total freedom to award commissions or not, if an employer wants to avoid wage liability. This plan did not grant that power. So, the law protected the worker’s earnings.
✅ Employers can check facts and math
✅ They may confirm eligibility rules
❌ They cannot cancel earned commissions already approved by sales progress
Why This Ruling Matters
This decision protects commission income many families rely on. Missed pay raises stress and breaks financial planning. Reliable wage laws defend earnings workers generate through real sales work. Courts now look deeper, beyond plan clauses, to ensure fair pay systems protect workers.
Quick Test for Commission Drivers and Sales Staff
• Did you finish and get approval for your sales?
• Does the brand track or judge your daily performance?
• Do you follow company rules, territory plans, or pay policies?
• Did the company deny all earned commissions?
If most answers are yes, you likely qualify for employee wage rights instead of contractor exclusions.
Steps Workers Can Take
• Request a pay and commission audit early
• Check plan math and sales approval records
• Get legal advice fast if a company cancels earned pay
• Document discipline, performance reviews, and job control methods
• Ask if wage rules applied to your payout timeline
Final Takeaway
In short, earned commissions are wages. A company cannot block pay you already earned using limited wording about discretion. Fair pay rules stabilize communities and protect weekly income. Acting early, therefore, helps workers avoid financial harm and build long-term income security.
