Jacksonville Unpaid Commisions & Bonuses Lawyers
The law in Florida for unpaid wages is complex. Speak with one of our Jacksonville employment law attorneys, who have substantial experience with claims of unpaid commissions and bonuses.
At Cantrell Kranz Jacksonville office, our employment lawyers assist in negotiating and preparing bonus and commission agreements and resolving disputes regarding unpaid bonuses and commissions.
Commissions and Bonuses
As is common in many industries, including retail, real estate, and other sales positions, the compensation structure for many employees or independent contractors often includes a commission and/or bonus component.
Commissions as a part of the total compensation for an employee or independent contractor is earned and payable once a sale is made by the employee or independent contractor which varies based on the employee’s or independent contractor’s individual sales. For example, stockbrokers receive a portion of the total fee received by the brokerage as a commission for specific sales of stock for their clients.
Unlike commissions, a bonus serves as an incentive to compensate employees or independent contractors based on meeting certain quotas or other predetermined thresholds. Bonus payments are typically only paid after such quotas or thresholds have been satisfied by the employee or independent contractor. For example, a retail salesperson may receive a monthly bonus based on the salesperson’s meeting a monthly total sales quota or selling a certain number of a specific item in the month.
Whether commissions or bonuses, it is very important that both the employer and employee or independent contractor clearly understanding the parameters relating to how such commissions and bonuses are earned by the employee or independent contractor, the amount of commissions and bonuses due and payable to the employee or independent contractor, and the timing of when such bonuses and commissions are due and payable to the employee or independent contractor.
The failure of the employer and either the employee or independent contractor to fully understand such commission and bonus agreements can lead to the parties enduring lengthy and costly litigation, including monetary court awards, including liquidated damages, prejudgment interest, and even punitive damages. See Barnes Surgical Specialties, Inc. v. Bradshaw, 549 So.2d 1189 (Fla. 2d DCA 1989) (Salesman’s claims for unpaid commissions was susceptible to prejudgment interest from date payment was due); See also Marlin Construction Group, LLC v. Bollinger, 2024 WL 1432150 (Fla. 6th DCA 2024) (Court found contractor breached commission contract and awarded $121,723.85 in damages to salesperson).
At Cantrell Kranz, we recommend to our clients that such bonus or commission agreements be in writing containing in clear detail the complete understanding of the parties. To speak with one of our Jacksonville employment lawyers, contact us at 1-877-858-6868 or coordinator@caklegal.com.
Recovering Unpaid Commissions and Bonuses
When such commission and bonus disputes occur between the employer and either the employee or independent contractor, under Florida law, such matters are usually litigated under the legal theory of breach of contract; however, under certain circumstances such claims may be brought under different legal theories such as “wage theft” or unjust enrichment.
Wage Theft
While many cities and counties in the State of Florida have “wage theft” ordinances for employees or independent contractors to potentially recover unpaid commission or bonuses, the City of Jacksonville and the County of Duval do not currently have any such ordinances.
Breach of Contract
One of the most common disputes arising with unpaid commissions and bonuses is that there was either never a true “meeting of the minds” between the parties regarding the parameters surrounding the payment of such bonuses or commissions or there are ambiguities in the commission or bonus agreement between the parties.
For example, if such terms are not clearly delineated by the parties, an employer may argue that the threshold for the payment of commissions or bonuses to a salesperson was based on net sales versus gross sales. While in Florida, both written an oral commission and bonus contracts are valid and enforceable, to avoid such problems, it is important that both parties understand their respective obligations and responsibilities relating to the payment of commissions or bonuses through a written agreement. See St. Joe Corp. v. McIver, 875 So. 2d 375, 381 (Fla. 2004) (Oral brokerage contracts, like other oral contracts, are valid and enforceable); 7 Fla. Jur.2d Brokers § 5 (1997) (providing that a contract of employment between a broker and a principal may be oral or written).
When such disputes do arise, an employee or independent contractor will typically then proceed to file a lawsuit against the employer for breach of contract. In Florida, to prevail in a breach of contract action against an employer for unpaid commissions or bonuses, an employee or independent contractor must prove the following elements: (1) a valid contract existed; (2) a material breach of the contract; and (3) damages. See Deauville Hotel Mgmt., LLC v. Ward, 219 So. 3d 949, 954–55 (Fla. 3d DCA 2017).
For an employee or independent contractor to prove there was a valid contract exists, the preferred manner is for there to be a written contract that can be presented to the court that is clear as to the agreed commission or bonus structure, including when such compensation is earned, when such compensation is payable, and whether such commissions or bonuses are payable after the employee or independent contractor separates from the employer.
As for the material breach element, the employee or independent contractor will need to prove that the employer breached the commission or bonus agreement by the failure to pay the employee or independent contractor their earned and payable commissions or bonuses. The damages element can be proven by the employee or independent contractor by the loss of the value of the unpaid commissions or bonuses.
To speak with our one of Jacksonville unpaid wage attorneys, contact us as 1-877-868-8686 or coordinator@caklegal.com.
Can I recover my costs and attorneys’ fees if I win a lawsuit over unpaid commissions or bonuses in Florida?
Florida Statute Section 448.08, provides: “[t]he court may award to the prevailing party in an action for unpaid wages costs of the action and a reasonable attorney’s fee.” See Strasser v. City of Jacksonville, 655 So.2d 234 (Fla. 1st DCA 1995).
Fortunately, in Florida both unpaid commissions and bonuses are considered “unpaid wages” for purposes of Florida Statute § 448. That is important because that statute allows for the potential recovery of attorney’s fees if a party prevails in a civil action for unpaid commissions and bonuses.
When is it too late to file a lawsuit under Florida law for unpaid commissions or bonuses?
Pursuant to Florida Statute § 95.11, there is a two-year statute of limitations for an action to recover wages or four-year statute of limitations for breach of contract.
Notwithstanding, it is important to file the lawsuit within the two-year statute of limitations to provide for the potential of recovery of your attorney’s fees and costs under Florida Statute § 448.
What damages am I entitled to in Florida for unpaid commissions or bonuses?
The amount of damages you may recover for unpaid commissions or bonuses depends on the type of claim you bring:
Unpaid Wages under Florida Statute § 488: the full value of unpaid commissions or bonuses, pre-judgment interest, attorney’s fees and costs. In some circumstances, liquidated damages (i.e., double damages) may be available.
Breach of Contract: the full value of unpaid commissions or bonuses, pre-judgment interest, and cost. Attorney’s fees are generally not available for breach of contract claims, unless the contract itself allows for the recovery of attorney’s fees.
Unjust Enrichment: the full value of unpaid commissions or bonuses, pre-judgment.
To speak with one of our attorneys, contact us at 1-877-858-6868 or coordinator@caklegal.com
