If you earn commissions, getting paid late, or not at all, can cost you real money. Texas has a statute that gives some sales representatives a powerful remedy, and the courts have clarified how it works.
The Texas Sales Representative Act
Chapter 54 of the Texas Business and Commerce Code covers sales representatives who earn commissions. If a company fails to pay a commission as the contract requires, the sales representative can sue for three times the unpaid commission due, plus reasonable attorney’s fees and costs. That is known as treble damages.
What the courts decided
In JCB, Inc. v. Horsburgh & Scott Co., the Fifth Circuit asked the Texas Supreme Court to answer two questions about the statute. In 2019, the Texas Supreme Court held that “unpaid commission due” is measured when the court determines liability. So if the company paid everything it owed before that point, there may be nothing left to triple. The court also held that a sales representative can still recover reasonable attorney’s fees even without treble damages. The Fifth Circuit then applied those answers, affirming the denial of treble damages and sending the attorney’s fee question back to the trial court.
Practical takeaways
- Late payment alone may not produce treble damages if the commissions are paid in full before liability is determined.
- Fee recovery can still be available, which helps make a smaller claim worth pursuing.
- The written commission agreement matters. Keep every contract, plan document, email and sales report.
Is it a wage claim or a commission claim?
Whether you are an independent sales representative or an employee affects which laws apply. Employees may also have rights under wage payment and overtime laws, including the right to have commissions counted when overtime is calculated. A lawyer can review your contract and pay records to identify the right claim.
If you are owed commissions, bonuses or overtime in Texas, do not wait. Deadlines can be short.
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This article is general information, not legal advice. Every case depends on its own facts, so talk to an employment lawyer about your situation.
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