NJ Supreme Court Holds That Sales Commissions Are “Wages” Under the Wage Payment Law
Introduction In Musker v. Suuchi, Inc. (decided March 19, 2025), the New Jersey Supreme Court held that compensation earned by employees via sales commissions constitute “wages” for purposes of New Jersey’s Wage Payment Law (“the WPL”). The court rejected the contention that sales commissions may qualify as “supplementary incentives” rather than “wages.” The distinction between the two concepts is critical because an employer’s failure to timely pay “wages” exposes the employer to administrative fines and penalties (N.J.S.A. § 34:11-4.10a-b) and, under the Wage Theft Act, entitles employees to assert claims not only for the withheld compensation but also for liquidated damages of up to 200 percent and for counsel fees (N.J.S.A. § 34:11-4.10c). Background Rosalyn Musker was employed as a salesperson for Suuchi, Inc., which sold software subscriptions to apparel manufacturers. In addition to an annual salary, Musker earned commissions based on the volume of her sales. At the onset of the COVID-19 pandemic, Suuchi began to sell Personal Protective Equipment (PPE) under a commission plan that differed from its usual commission structure. Subsequently, a dispute arose between Musker and Suuchi over her PPE commissions, with Musker maintaining that those commissions should have been calculated based on a gross sales basis and constituted “wages” under the WPL, and Suuchi maintaining that it properly calculated her...