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In a significant decision for commission-based employees, the Supreme Court of Virginia issued a ruling on December 30, 2025, that impacts how unpaid sales commissions can be recovered. In the case of Groundworks Operations, LLC v. Campbell, the court determined that sales commissions do not qualify as “wages or salaries” under the state’s primary wage theft statute, the Virginia Wage Payment Act (VWPA).
This decision reverses a lower court’s finding and narrows the legal avenues available to salespeople and other commissioned employees seeking to recover earned but unpaid compensation from their employers.
What Did the Virginia Supreme Court Decide About Unpaid Commissions?
The court focused on the specific language of the Virginia Wage Payment Act, (Code § 40.1-29), which requires the timely payment of “wages” and “salaries.” The majority opinion concluded that because the statute does not explicitly mention the word “commissions,” it does not apply to that form of payment.
The justices reasoned that in common legal usage, “wages” typically refer to compensation based on time worked or quantity produced, while “commissions” are payments based on a percentage of sales. Because the legislature did not expressly include “commissions” in the statute, the court declined to extend its protections to cover them.
What This Means for Employees
This ruling has serious consequences for employees in Virginia who are paid partly or entirely on commission. The primary impact is the loss of powerful legal remedies previously available under the VWPA.
Before this ruling, employees could use the VWPA to sue for unpaid commissions and potentially recover not only the owed amount but also liquidated damages (often double or triple the amount) and attorney’s fees. This made it financially viable for employees to pursue legal action.
After this ruling, employees can no longer use the VWPA for unpaid commission claims. This effectively strips them of the right to seek liquidated damages and mandatory attorney’s fees through this specific, powerful legal avenue. The financial burden of pursuing a claim for unpaid commissions has now significantly increased for the employee.
What Legal Options Are Left for Recovering Unpaid Commissions?
While the most powerful tool has been removed, employees are not left without any recourse. However, the remaining options are generally more complex and less financially favorable.
Alternative legal claims may include:
•Breach of Contract: If you have a written or oral employment agreement that details your commission structure, you can sue your employer for failing to honor that contract. However, this type of claim does not typically allow for the recovery of attorney’s fees, making it a more expensive legal battle.
•Unjust Enrichment or Quantum Meruit: These are claims arguing that the employer was unfairly enriched by your work and that you should be paid the reasonable value of your services. These are also complex claims that do not come with the same fee-shifting provisions as the VWPA.
What Should You Do if Your Employer Owes You Commissions?
If you are a Virginia employee and your employer is refusing to pay you earned commissions, it is crucial to act strategically.
1.Review Your Employment Agreement: Carefully read any contract or commission plan you signed. The specific terms of your agreement are now more important than ever.
2.Document Everything: Keep detailed records of your sales, the commissions you believe you are owed, and any communication with your employer about the unpaid amounts.
3.Seek Legal Guidance: The legal landscape for unpaid commissions in Virginia has become much more challenging. Consulting with an experienced Virginia employment lawyer is the best way to understand your remaining rights and evaluate whether pursuing a legal claim is feasible.
Contact an Employment Lawyer
The Groundworks decision has made it more difficult, but not impossible, to recover unpaid commissions. If your employer has failed to pay you what you earned, our firm can help you explore all available legal options. Contact us today for a free, confidential consultation to discuss your case.
References
[1] Groundworks Operations, LLC v. Campbell, Record No. 241092 (Va. Dec. 30, 2025).
