On March 17th, 2025, the New Jersey Supreme Court ruled that worker commissions are protected by the state’s wage and hour laws. In the case of Rosalyn Musker v. Suuchi, Inc., New Jersey’s highest court ruled in favor of an employee. Within this article, our New Jersey wage and hour attorney provides a more comprehensive overview of the decision.
Case Review: Rosalyn Musker v. Suuchi, Inc
Background & Facts
In the early part of 2020, a woman named Rosalyn Musker began working as a Senior Enterprise Sales Manager for a company called Suuchi, Inc. Suuchi, Inc. is a business that primarily sales-industry specific software subscription services to apparel manufacturers. Ms. Musker was paid through a compensation package that included both a base salary and the eligibility for commissions under a company-structured plan. A commission is a form of compensation paid to an employee or contractor based on the completion of a sale, service, or specific task, usually calculated as a percentage of revenue or profit generated. It is commonly used in sales-related roles.
When COVID-19 hit the United States in March of 2020, Suuchi, Inc. expanded its product line in March 2020 to include Personal Protective Equipment (PPE). Notably, the business offered these products on a commission basis. That was communicated through emails to the sales team, including Ms. Musker. She excelled in her position and she generated nearly $35 million in gross revenue from PPE sales. However, a major dispute arose regarding her commission. Ms. Musker claimed she was entitled to 4 percent of gross sales—nearly $1.4 million. In contrast, the company countered that her commission was 4 percent of net revenue, about 33 percent of that amount.
The Legal Issue
The central legal question was whether the commissions earned by Musker from PPE sales constituted “wages” under the New Jersey Wage Payment Law (WPL) or if they fell under the category of “supplementary incentives,” which are not protected by the statute. Notably, the WPL defines “wages” as direct monetary compensation for labor or services rendered by an employee, determined on a time, task, piece, or commission basis. However, it excludes “supplementary incentives and bonuses” that are calculated independently of regular wages and paid in addition to them. The interpretation of these definitions was the key to resolving the dispute.
The Decision of the Court
At the trial stage, the court dismissed Musker’s WPL claim. It ruled that her PPE commissions were “supplementary incentives” and not “wages” under the law. The decision was affirmed by the Appellate Division. However, upon review, the New Jersey Supreme Court reversed these decisions. The Supreme Court held that commissions are direct monetary compensation for labor or services rendered by an employee and thus fall under the definition of “wages” as per the WPL. The state’s highest court clarified that a “commission” earned for labor or services cannot be excluded from the definition of “wages” as a “supplementary incentive.” Notably, this is a major decision by the New Jersey Supreme Court. It has major implications for both employers and employees.
Implications for Workers
The landmark decision by the New Jersey Supreme Court has big consequences for employment law, particularly for workers who are compensated by commissions. The court clearly affirmed that commissions are classified as “wages” under the WPL. As such, New Jersey law holds that workers who receive commission-based compensation are entitled to the same legal protections as those earning regular wages. Among other things, this includes timely payment and the right to take immediate legal action if wages are improperly withheld.
If you are a worker in New Jersey who is paid partially or fully based on commission, it is imperative that you know how to protect your wage and hour rights. Wage and hour claims are notoriously complex. It is normal for workers to have a lot of questions about their wage and hour rights. If your employer failed to make your commissions payments on time or in-full, you have the right to take legal action. Our New Jersey wage and hour attorney can help.
Contact Our New Jersey Wage and Hour Attorney Today
Charles Z. Schalk is a New Jersey employment attorney with the skills, knowledge, and experience that workers can rely on—even in tough cases. If you have any questions about a wage and hour case, please call us now at (908) 526-0707 or contact us online for your fully confidential, no obligation case review. We represent workers throughout all of New Jersey.