Table of Contents
• A Major Setback for Commission-Based Employees in Virginia
• The Case: Groundworks Operations, LLC v. Campbell
• The Supreme Court’s Decision
• What This Means for Virginia Employees
• What Are Your Options for Recovering Unpaid Commissions?
• Contact an Employment Lawyer
A Major Setback for Commission-Based Employees in Virginia
A recent Virginia Supreme Court case, Groundworks Operations, LLC v. Campbell, has delivered a significant blow to commission-based employees across the Commonwealth . At the heart of the dispute was a simple but powerful question: are unpaid commissions considered “wages” under Virginia’s wage payment and wage theft laws? In a decision that surprised many, the Court ruled they are not.
This ruling has major implications for any employee in Virginia whose compensation includes commissions. It changes the legal landscape for recovering unpaid earnings and places a new emphasis on the importance of carefully worded employment agreements.
The Case: Groundworks Operations, LLC v. Campbell
Groundworks Operations is a Virginia-based management company affiliated with a construction business. Several former employees, including Joseph Campbell, worked in commission-based roles. When they left the company, Groundworks refused to pay commissions tied to jobs that were not completed and paid for before their departure, citing a company policy.
The former employees sued under the Virginia Wage Payment Act, arguing that their earned but unpaid commissions were being illegally withheld . They contended that commissions are a form of wages and that the company’s refusal to pay them constituted wage theft.
The Supreme Court’s Decision
The case traveled through three levels of Virginia courts, with the outcome changing at each stage:
Trial Court sided with the employer, dismissing the case entirely and agreeing that commissions are not wages under the statute.
Virginia Court of Appeals reversed that decision, siding with the employees. It held that commissions could qualify as wages under the Wage Payment Act and allowed the lawsuit to move forward — a significant win for workers.
Virginia Supreme Court, however, ultimately sided with the employer. In its December 2025 ruling, the Court focused on the precise wording of the Virginia Wage Payment Act, which requires the payment of “wages or salaries” but does not explicitly mention the word “commissions.”
The justices reasoned that because other Virginia laws specifically list “wages, salaries, and commissions” together, the legislature’s choice to omit “commissions” from the Wage Payment Act was intentional. The Court reversed the Court of Appeals and entered final judgment for Groundworks Operations. Two justices dissented, arguing that commissions are simply another form of compensation for work performed and should be treated as wages, but the majority opinion now controls Virginia law.
“We hold that Code § 40.1-29 does not cover commissions, either expressly or by implication.” – Virginia Supreme Court, Groundworks Operations, LLC v. Campbell
What This Means for Virginia Employees
The impact of this decision is significant. Commission-based employees in Virginia can no longer use the powerful tools of the Virginia Wage Payment Act to recover unpaid commissions. This law had allowed for the recovery of not only the unpaid wages but also liquidated damages, prejudgment interest, and attorney’s fees.
With the Groundworks decision, the path to recovering unpaid commissions is now more difficult. The ruling places the burden back on employees to rely on other legal theories, which may not be as protective or financially advantageous.
What Are Your Options for Recovering Unpaid Commissions?
While the wage theft statute is no longer an option, employees still have avenues to recover unpaid commissions:
1. Breach of Contract: Your primary legal claim will now likely be for breach of contract. This requires a clearly written commission agreement that specifies exactly when and how commissions are earned and paid. The strength of your case will depend entirely on the language of your contract.
2. Quantum Meruit: If you don’t have a written contract, you may be able to argue for payment under a theory of quantum meruit, which means “what one has earned.” This equitable remedy argues that you should be paid for the value of the work you performed.
It is worth noting that the Virginia General Assembly considered legislation — House Bill 1355 — that would have amended the Wage Payment Act to explicitly include commissions in the definition of “wages” . However, that bill failed in the 2026 session. Unless the legislature revisits the issue, the Groundworks decision stands as the controlling law in Virginia.
Contact an Employment Lawyer
If your employer has refused to pay you earned commissions, it is crucial to have your commission agreement and the specific facts of your situation reviewed by an experienced employment attorney. The legal team at The Spiggle Law Firm can help you understand your rights and explore all available options for recovering the compensation you are owed.
Contact us today to see how we can help.
References
[2] Virginia Code § 40.1-29. Retrieved from
[3] HB 1355, 2026 Session, Virginia General Assembly. Retrieved from
