New Jersey Supreme Court Rules That Commissions Are Always Wages Under the Wage
By: Charlotte Moriarty
On March 17, 2025, the New Jersey Supreme Court reversed the state appellate court’s June 2024 decision in Rosalyn Musker v. Suuchi, Inc., holding that commissions must be considered “wages” under the New Jersey Wage Payment Law (“NJWPL”), rather than “supplementary incentives.” The court reasoned that “because a commission directly compensates an employee for performing a service,” it always falls within the definition of wages under the NJWPL.
The decision marks a significant win for employees who depend on commissions as part of their earnings, as it imposes stricter compliance requirements on employers by classifying commissions as wages rather than ancillary income. New Jersey employers now face an increased risk of wage and hour lawsuits and should carefully review their commission agreements to ensure full compliance with state laws.
When defined as wages, the payment of commissions will be subject to the NJWPL’s rules on the time, manner and mode of payment, and the prohibition against withholding of wages for illegal deductions.
For example, the NJWPL provides that wages must be paid at least twice during a calendar month to non-exempt employees. Exempt employees, those who are paid a set weekly salary and whose duties meet the statutory requirements, may agree to be paid monthly. Further, upon separation, wages must be paid to employees no later than the next regularly scheduled payday. If an employer neglects to pay employee commissions in accordance with the NJWPL, employees will now have a private right of action to pursue wage theft claims under New Jersey law.
If you have questions about compliance with New Jersey wage laws or how this decision may impact your business, please contact Sheryl Galler at sgaller@booklawllp.com or Chaim Book at cbook@booklawllp.com.
