Extremity Care LLC Dismissed from Unpaid Commission Suit

Court rules company that issued commission checks not considered employer under Virginia Wage Payment Act

Mar. 30, 2026 at 1:15pm

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A high-end, photorealistic studio still-life featuring a stack of crisp, freshly printed paychecks resting on a clean, monochromatic background, conceptually representing the abstract concepts of corporate finance and employment law.A court ruling that the company issuing paychecks does not automatically qualify as an employer underscores the complexities of employment law.Richmond Today

A Virginia federal court has dismissed Extremity Care LLC from a lawsuit filed by an employee seeking unpaid sales commissions, ruling that the company that issued the commission checks did not qualify as the plaintiff's employer under the state's Wage Payment Act.

Why it matters

This case highlights the importance of clearly defining employment relationships, as simply issuing paychecks is not enough to establish an employer-employee status under Virginia law. The ruling sets a precedent that could impact similar cases involving disputes over unpaid wages and commissions.

The details

The plaintiff, Michael Damon, sued his former employer Tiger Aesthetics Medical LLC (TAM) and Extremity Care LLC (EC) for failing to pay earned sales commissions in violation of the Virginia Wage Payment Act. However, the court ruled that EC, the company that issued Damon's commission checks, did not qualify as his employer under the statute. The court found that the complaint contained no allegations showing EC participated in Damon's hiring, supervised his work, or made decisions about his compensation or termination - factors that are required to establish an employment relationship beyond just paying wages. Instead, the complaint identified TAM as Damon's sole employer, with all details about his hiring, supervision and termination attributed to that company.

  • The lawsuit was filed in March 2025.

The players

Michael Damon

The plaintiff who sued his former employer for unpaid sales commissions.

Extremity Care LLC

The company that issued commission checks to the plaintiff, but was dismissed from the lawsuit for not qualifying as his employer under Virginia law.

Tiger Aesthetics Medical LLC

The plaintiff's former employer, which was identified as his actual employer in the lawsuit.

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What they’re saying

“Simply put, payment is a necessary condition—but not a sufficient condition.”

— The court

What’s next

The case against Tiger Aesthetics Medical LLC for the unpaid commissions will continue.

The takeaway

This ruling underscores that merely issuing paychecks is not enough to establish an employment relationship under Virginia's Wage Payment Act. Companies must demonstrate other common-law indicia of an employment relationship, such as hiring, supervision and termination decisions, in order to be liable for unpaid wages or commissions.