The New Jersey Supreme Court has ruled that workers’ commissions are counted as wages under the New Jersey Wage Payment Law. The ruling was issued on March 17, 2025.
The Details
As background, the New Jersey Wage Payment Law (WPL) defines wages as direct monetary compensation for labor or services rendered by a worker, where the amount is determined on a time, task, piece, or commission basis.
Note: Wages exclude supplementary incentives and bonuses (which are calculated independently of, and paid in addition to, regular wages).
The Case
A worker filed a suit claiming they were entitled to $1.3 million in commissions for their sales under the New Jersey Wage Payment Law. In Musker v. Suuchi, the New Jersey Supreme Court held that commissions paid for labor or services constitute wages, not supplementary incentives, and are subject to WPL’s protections. The Court explained:
- A supplementary incentive:
- Workers’ commissions:
Next Steps
New Jersey employers should review their pay policies and practices regarding commissions to help ensure compliance with New Jersey Wage Payment law