By: Ty Hyderally, Esq. and Jamie Davila, Esq.

March 27, 2025

On March 17, 2025, the New Jersey Supreme Court ruled unanimously in the finding that commissions are always classified as wages. This allows employees an expanded recovery under the Wage Payment Law.

In Rosalyn Musker v. Suuchi, Inc., the Plaintiff Rosalyn Musker worked for the Defendant Succhi Inc., selling software subscriptions to apparel manufacturers. In addition to her base salary, Musker was eligible for commissions under Succhi’s Sales Commission Plan. In March of 2020, Succhi decided to sell Personal Protective Equipment (PPE) on a commission basis in response to the COVID-19 crisis.  Musker generated approximately $34,448,900 in gross revenue by selling PPE. The issue in dispute is whether the 4% commission she was entitled to, or those sales were of gross or net revenue. Specifically, both parties disagreed about whether Musker’s PPE commissions would be considered wages or as supplementary incentives; which are excluded from the Wage Payment Law under N.J.S.A. 34:11-4.1(c).

Defendants argued that the fact that Musker received a base salary, and the commissions are related to a onetime event for the company (the sale of PPE, which were not part of the company’s ordinary business) and due to the nature of the product being new and only sold temporarily, the commissions were supplementary incentives and thus not covered under the WPL. The court rejected this argument as it did not rise to support the notion that the sales of the product fell outside of the labor or services that an employee provides. The court further explained that receiving a base salary does not turn commissions into supplementary incentives under the WPL.

To constitute a wage under the WPL, there must be direct monetary compensation for labor or services rendered by an employee. An employee’s direct monetary compensation can be determined on a time, task, piece, or commission basis. Supplementary incentives are compensation that motivate employees to do something above and beyond their labor or services. A commission earned for labor or services rendered by an employee can thus never be a supplementary incentive. The court held that the WPL defines wages as direct monetary compensation for labor or services rendered by an employee where the amount is determined on a time, task, piece, or commission basis. Musker earned her commissions through labor and services she provided to Suuchi. This leads to the conclusion that the Musker’s commissions are wages under the WPL. Hence, this court decision firmly establishes that earned commissions are required to be paid in a timely manner regardless of whether a base salary is also paid to the employee.

This is a great victory for employees in New Jersey. It will be interesting to watch wear this goes!!!

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