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NJ Supreme Court Ruling: Commissions Count as Wages Under State Law

NJ Supreme Court Ruling: Commissions Count as Wages Under State Law
man looking at check, with words in background Commissions are Wages, NJ Supreme Court Ruling

What the Musker v. Suuchi Decision Means for New Jersey Employees

If you earn commissions at work, a recent New Jersey Supreme Court decision could have a major impact on your rights. In Musker v. Suuchi, Inc. (decided March 17, 2025), the Court confirmed that commissions must be treated as “wages” under the New Jersey Wage Payment Law (WPL).

This ruling strengthens protections for thousands of sales employees across the state, ensuring they can hold employers accountable if commissions are withheld or delayed.

🔎 The Case: Musker v. Suuchi, Inc.

  • Background: Rosalyn Musker worked for Suuchi, Inc. and was promised commissions for sales, including PPE products during the COVID-19 pandemic.
  • The dispute: Suuchi withheld commissions, claiming they were “supplementary incentives” and not wages under the WPL.
  • The decision: The NJ Supreme Court rejected that argument and held that commissions are wages under the statute, regardless of whether they’re tied to new products or separate from a base salary.

👉 Read the official court opinion here.

⚖️ Key Takeaways From the Decision

  • Commissions = Wages: Under N.J.S.A. 34:11-4.1(c), wages include compensation for labor “based on time, task, piece, or commission.”
  • Narrow “Supplementary Incentives” Exception: Only truly extra incentives beyond the scope of regular work qualify for exclusion—not standard sales commissions.
  • Employer Liability: Employers who fail to pay commissions on time may owe unpaid wages plus up to 200% in liquidated damages, attorneys’ fees, and costs.

👩‍💼 Why This Ruling Matters

For Employees

  • If your employer is withholding or delaying commissions, you now have stronger legal footing to challenge them.
  • Commission plans tied to new or temporary products are still covered by the Wage Payment Law.

For Employers

  • Businesses must review commission structures and ensure they comply with the WPL.
  • Contracts and sales policies should be updated to reflect this ruling and avoid potential lawsuits.

✅ Steps for Employees Concerned About Commissions

  1. Review your commission plan – confirm whether it’s written and how payments are defined.
  2. Track your sales and work contributions – keep records of revenue, sales data, and communications.
  3. Check your paystubs and history – were commissions paid on time? Were they reduced or withheld?
  4. Consult legal counsel – if your commissions aren’t being paid properly, you may be entitled to damages.

How Zirrith Law Can Help

At Zirrith Law, we represent employees in wage disputes under the New Jersey Wage Payment Law. If you believe your employer has withheld commissions or misclassified your pay, we can review your case, advise you on your rights, and fight for the wages you’ve earned.

📞 Call us today at732 521-5900
📩 Or contact us online to schedule a confidential consultation.