History
  • No items yet
midpage
Joseph Campbell v. Groundworks Operations, LLC
1476234
Va. Ct. App.
Nov 19, 2024
Read the full case

Background

  • Appellants were former employees of Groundworks Operations, LLC (including JES Construction, LLC) who were paid, wholly or partly, by commissions on sales.
  • The employer historically paid commissions based on an oral agreement—half when a deal was finalized and half upon completion and final payment by the customer.
  • Company policy was to forfeit unpaid commissions for unfinished jobs if an employee left before job completion.
  • In 2022, a new written commission policy was introduced, further restricting commission payouts following termination.
  • Appellants sued under the Virginia Wage Payment Act, alleging failure to pay earned commissions; the trial court dismissed the case, ruling commissions were not protected "wages."
  • Appellants appealed the trial court's dismissal.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Are commissions "wages" under the Virginia Wage Payment Act? Commissions count as wages; the Act's remedial purpose protects all earned compensation, including commissions. Commissions are distinct from wages; the statute distinguishes the two. Yes, "wages" is broad and includes commissions.
Does the Act permit collective actions for unpaid commissions? Yes; 2020 amendment allows collective suits for unpaid wages, which include commissions. No; only wages, not commissions, are covered by the collective action provisions. Yes, collective actions for unpaid commissions are authorized.
Is withholding or forfeiting earned commissions upon termination prohibited? Yes; the Act prohibits forfeiture of earned wages (including commissions) as a condition of employment. No; oral and written policies validly control commission payout upon termination. Yes, forfeiture provisions violate the Act.
Can employers demand employees forfeit commissions as a condition of employment? No; such agreements are barred by the Act. Yes; commissions are not protected wages, so forfeiture agreements are allowed. No, forfeiture agreements for commissions are invalid under the Act.

Key Cases Cited

  • Fidelity Ins., Trust & Safe Deposit Co. v. Shenandoah Valley R.R. Co., 86 Va. 1 (Va. 1889) (defining wages broadly as compensation for services rendered)
  • Unemployment Comp. Comm’n v. Harvey, 179 Va. 202 (Va. 1942) (commissions can be a form of employee compensation)
  • Commonwealth Dep’t of Transp. v. Swiney, 23 Va. App. 467 (Va. Ct. App. 1996) (wages include compensation based on time or output)
  • B.P. Solar v. Jones, 49 Va. App. 322 (Va. Ct. App. 2007) (further clarifying the meaning of wages)
  • Home Beneficial Life Ins. Co. v. Unemployment Comp. Comm’n, 181 Va. 811 (Va. 1943) (commissions defined as compensation for services rendered)
Read the full case

Case Details

Case Name: Joseph Campbell v. Groundworks Operations, LLC
Court Name: Court of Appeals of Virginia
Date Published: Nov 19, 2024
Docket Number: 1476234
Court Abbreviation: Va. Ct. App.