I've read the Texas Administrative Code regarding Paydays but my situation has a little twist.

My offer letter stated I earned a base plus commission and that commissions were paid 2 months in arrears assuming money was collected from the client. I received a handbook after I began working that stated the company paid discretionary bonuses monthly and that an employee had to be employeed in good standing in order to receive such a discrentionary bonus.

If I leave, can I get the commission earned to my departure date?

Your final check should include wages for hours worked. It would be ok to continue to pay commissions based on the company's predefined commission payment schedule. Since the Texas Payday Law defines "wages" to include commissions, you should be paid for commissions that are deamed as "earned" under the company plan. If they are traditionally paid 2 months in arrears, that is fine. The notation about discretionary bonuses in your handbook is most likely unrelated to commissions. DOL generally defines the two as separate events.


PAYMENT OF WAGES

The kinds of payments subject to the Texas Payday Law include compensation for services rendered regardless of how they are computed, commissions and bonuses according to the agreement between the parties, and certain fringe benefits due under a written agreement with or policy of the employer. Expense reimbursements, gratuities, gifts and the like are not considered wages and are not covered by the Texas Payday Law. Unless an employee agrees in writing to accept part or all of his/her wages in kind, or in another form, wages must be paid in United States currency, a written instrument negotiable on demand at full face value for United States currency, or by electronic transfer of funds.
Wages must be delivered to the employee at her/his regular place of work during working hours, mailed by registered mail to be received by the employee not later than payday, or by any reasonable means, or to any person authorized in writing by the employee.

The way the handbook is written, it's very apparent that "discretionary bonus" is used in place of the word "commission". When I first saw the phrase I kind of giggled at the way they used discretionary bonus instead of commission.

I work for a staffing firm. When you say "earned" under the company plan, do you mean commissions for placements made up until the day I give notice? This may seem nit picky but this company takes the cake. There is no set policy to define "earned commissions" or even when they are considered earned. It's never addressed. Commission isn't even mentioned in our handbook. Discretionary bonuses are paid monthly to employees in good standing and that's it.

Most companies outline commissions outside the employee handbook. Most likely you signed an agreement at hire that explained how/when/if commissions are paid. This document should explain when a commission is considered "earned". In the eyes of DOL commissions and bonuses are not the same thing. If the document is ambiguous on when a commission is deemed as "earned", then you might have difficulty recouping commissions due.

My offer letter outlined that commissions were paid 2 months in arrears assuming money had been collected. If money had not been collected, commission would be paid once the client has paid the invoice.

Our commission statements included in our checks show projected payouts 2 months in advance. For instance, if I make a placement in June, I should be paid for that placement in August. My commission statement for August will show August commissions, September commission projections, and October commission projections. Can I assume that commission has been earned if the company is showing what my commission checks should be (assuming money is collected)?

Projections are just that, projections! It appears these projections may be altered based on if/when the customer pays up. I would double check with your former boss to confirm; but IMHO it sounds like you have a good case for receiving commissions that have been "earned".

You are so right -- projections are just projections. And yes, when the projected commission is paid does depend on when the client pays.

Thank you so much for your help with this. Thankfully, I don't have a former boss yet but will next week. I just needed to get my ducks in a row before giving notice.

http://www.texasworkforce.org/news/efte/final_pay.html#finalpaycommbonus

"A common problem is that of what happens with an employer's duty to pay commissions and bonuses once an employee has left the company. The answer depends upon the terms of the commission or bonus agreement. A good agreement will avoid the risks of ambiguity by clearly setting out how commissions are earned, when and under what circumstances they are paid, and what happens to commissions from sales in progress at the time of work separation. Similarly, a bonus agreement should specify exactly how a bonus is earned, when it is paid, and what happens to a bonus that is not determined or paid out until after an employee has left the company. If the commission or bonus agreement provides for payment of commissions and bonuses in any way after an employee has separated from employment, the deadline for such a payment would be based upon the wording of the agreement."