New Jersey Employment Lawyer Blog
In a landmark decision on March 17, 2025, the New Jersey Supreme Court unanimously ruled in Rosalyn Musker v. Suuchi, Inc. that commissions are unequivocally considered “wages” under the NJ Wage Payment Law (WPL). This ruling strengthens protections for New Jersey employees, ensuring employers cannot evade their obligation to pay earned commissions.
The Facts of the Case
Plaintiff Rosalyn Ms. Musker was employed by Suuchi, Inc., a company specializing in software subscriptions for apparel manufacturers. Initially hired for administrative duties with an annual salary of $80,000, Ms. Musker transitioned to a sales role in February 2020. In this capacity, she was eligible for commissions under Suuchi’s Sales Commission Plan (SCP), which incentivized sales based on Annual Recurring Revenue (ARR).
In March 2020, responding to the COVID-19 pandemic, Suuchi expanded its product line to include Personal Protective Equipment (PPE). Suuchi offered commissions to employees for PPE sales, as outlined in internal communications.
Ms. Musker generated approximately $34.4 million in gross revenue from PPE sales. However, a dispute arose regarding the calculation of her 4% commission—specifically, whether it should be applied to gross or net revenue.
Procedural History
Ms. Musker filed a complaint alleging that Suuchi violated the WPL by withholding her earned commissions. The trial court dismissed her WPL claims, agreeing with Suuchi’s characterization that her commissions were “supplementary incentives” that fell outside of the WPL’s definition of wages. The Appellate Division affirmed this decision. Subsequently, the New Jersey Supreme Court granted leave to appeal.
Supreme Court’s Analysis and Decision
The central issue before the Supreme Court was whether commissions qualify as “wages” under the WPL. The statute defines “wages” as the “direct monetary compensation for labor or services rendered by an employee, where the amount is determined on a time, task, piece, or commission basis” but “excluding any form of supplementary incentives and bonuses.” The Court emphasized that this definition explicitly includes commissions, thereby granting commissions protection under the WPL.
The Court clarified that the term “supplementary incentives” refers to additional compensation designed to motivate employees beyond their standard duties and regular wages, such as paying an employee to share office space with a coworker or a bonus for perfect attendance. In contrast, commissions are direct compensation for labor or services rendered and thus cannot be a supplementary incentive.
In Ms. Musker’s case, she earned her commissions through direct labor and services she provided to Suuchi, namely sales. The fact that PPE was a new product line for the company did not alter the nature of her work or the classification of her earnings. Therefore, the Court concluded that her commissions were indeed “wages” under the WPL.
The Takeaway
The New Jersey Supreme Court’s decision in Musker v. Suuchi, Inc. unequivocally establishes that commissions are always wages under the Wage Payment Law. This landmark ruling ensures that employees receiving commission-based compensation are entitled to the full protections afforded by the WPL.
Notably, the WPL requires employers who violate it to pay the employee all of their unpaid wages, plus as much as two times that amount, meaning a total of up to three times their unpaid commissions and other wages. It thus promotes fair employment law practices and safeguarding workers’ rights in the state.
Has Your Employer Refused to Pay Your Duly Earned Commissions?
If your employer has failed to pay your earned commissions or attempted to classify them as something other than wages, you may have a New Jersey wage and hour claim. Under New Jersey law, commissions are protected and employers cannot withhold them without consequences. At Rabner Baumgart Ben-Asher & Nirenberg, P.C., we fight for employees who have been denied the wages they rightfully earned. If you believe your employer is unlawfully withholding your commissions, call us today at (201) 777-2250 or contact us online to schedule a consultation. Our Bergen County employment attorneys are dedicated to ensuring workers across New Jersey receive the compensation they deserve.