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Labor & Employment

Compensation Dispute

The commission check was short, the promised bonus never appeared, or a buyout calculation does not match the offer letter. A compensation dispute often turns on what the pay terms actually said and when the pay was earned.

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01 GUIDE

Compensation Dispute: what usually happens

Earned pay and promised pay

Not every unpaid amount is treated the same way. Wages and earned commissions are generally protected by New York's wage laws, which can add remedies for late or missing pay. Bonuses are more complicated: one tied to your own production under a set formula may be treated differently from one that depends on company results or management's discretion, which is often a contract question rather than a wage claim. Deferred compensation, equity, and severance usually depend on the documents that created them, and those documents may set their own dispute procedures. Identifying which kind of pay is at issue is often the first step.

The documents behind the number

Gather the offer letter, commission or bonus plans for each year, amendments, emails about targets, and statements showing how prior payments were calculated. In New York, commissioned salespeople are generally entitled to a written commission agreement, and its terms often control what happens to commissions on deals that close after you leave. Look for clauses on chargebacks, caps, and forfeiture on resignation. If the plan lets the company change terms during the year, check which version was in force when the work was done. Keep your own copies of messages and records that belong to you, and ask before copying company files.

Resolving it without losing ground

Many compensation disputes start with a written request that sets out the calculation and asks for an explanation. If you are still employed, retaliation for raising a pay complaint is prohibited, though the working relationship still matters in practice. If you are leaving, a separation agreement may offer payment in exchange for a release, and its terms deserve a close read. Some plans and offer letters also require an internal review step or arbitration before anything else. In a first meeting we look at the pay documents, estimate the amount at stake, and discuss whether negotiation, a wage claim, a contract claim, or arbitration under the plan fits the situation.

02 ATTORNEYS

Who you would be working with

Attorneys at our New York and Washington, D.C. offices handle matters like this one.

03 CASE RESULTS

Matters we have handled

Prior results do not guarantee a similar outcome.

05 HOW WE WORK

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06 OFFICES

Where we meet clients

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Attorney Advertising. This page is general information about compensation dispute and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.