Virginia Supreme Court Clarifies Wage Theft Law: Commissions Are Not “Wages”
What Employers and Employees Need to Know After Groundworks Operations, LLC v. Campbell
On December 30, 2025, the Supreme Court of Virginia issued a significant decision that reshapes how commission-based compensation is treated under Virginia’s wage theft statute. In Groundworks Operations, LLC v. Campbell, the Court held that commissions are not “wages” or “salaries” protected by Virginia Code § 40.1-29, reversing a prior decision of the Court of Appeals .
This ruling has immediate consequences for employers, sales professionals, and commission-based workers across the Commonwealth.
The Background of the Case
The plaintiffs were former sales employees paid primarily—or entirely—by commission. They alleged that their employer failed to pay earned commissions after their employment ended and brought a collective action under Virginia’s wage theft law, seeking unpaid commissions, liquidated damages, and attorneys’ fees.
The trial court dismissed the case, finding that the wage theft statute does not apply to commissions. The Court of Appeals reversed, reasoning that the statute should be interpreted broadly to include commissions. The Supreme Court of Virginia ultimately rejected that interpretation and reinstated the dismissal .
The Supreme Court’s Holding
The Court focused on statutory text and legislative intent. Virginia’s wage theft statute expressly references “wages” and “salaries,” but does not mention commissions. The Court emphasized that throughout the Virginia Code, the General Assembly routinely lists wages, salaries, and commissions separately when it intends to cover all three.
Because the legislature knows how to include commissions—and chose not to do so in § 40.1-29—the Court concluded that commissions fall outside the statute’s scope .
Importantly, the Court also declined to defer to agency guidance suggesting that commissions are covered, holding that pure questions of statutory interpretation belong to the courts, not administrative manuals.
Why This Decision Matters
For Employers
- Employers are not subject to Virginia’s wage theft penalties—including liquidated damages, treble damages, and criminal exposure—based solely on unpaid commissions.
- This decision provides greater certainty, but also highlights the importance of clear, written commission agreements defining when commissions are earned, payable, or forfeited.
For Employees
- Commission-based employees cannot rely on the wage theft statute to recover unpaid commissions in Virginia.
- Recovery will instead depend on contract law, equitable claims, or other statutory frameworks, which often provide fewer remedies than § 40.1-29.
Key Takeaways
- Virginia’s wage theft statute protects wages and salaries, not commissions.
- Commission disputes are primarily contract disputes, not wage theft claims.
- Businesses should review commission plans, separation policies, and post-termination payment provisions.
- Employees should seek legal advice early to assess alternative claims outside the wage theft framework.
How We Help
At The Mundaca Law Firm, we advise both employers and employees on:
- Drafting and enforcing commission agreements
- Wage and hour compliance strategies
- Employment litigation and risk management
- Multi-state employment law issues
If you have questions about commission structures, unpaid compensation, or how this decision affects your business or employment rights, contact us to schedule a consultation. Proactive legal guidance can prevent costly disputes and protect your interests.