A dispute over unpaid commissions and alleged violations of state wage laws has led to a lawsuit against a software company by its former chief revenue officer. The case centers on claims that the company failed to pay substantial earned commissions after documented sales performance, raising questions about employment classification and compliance with North Carolina wage statutes.
The complaint was filed by Ronald Raczkowski in the United States District Court for the Middle District of North Carolina on April 2, 2026, naming Xillio US, Inc. as the defendant.
According to court documents, Raczkowski alleges that he was hired by Xillio US, Inc., a Delaware corporation with its principal place of business in Georgia, to serve as Chief Revenue Officer beginning June 23, 2025. Raczkowski states that he performed all his work remotely from Chapel Hill, North Carolina. His responsibilities included growing worldwide sales and managing partner organizations with a focus on North America.
The complaint outlines that Raczkowski was initially classified as an independent contractor before being converted to W-2 employee status in November 2025. Despite this change in classification through Justworks PEO, Raczkowski asserts that his job duties remained unchanged throughout his tenure.
Raczkowski’s offer letter detailed a compensation package including a fixed base salary of $23,171.20 per month (equivalent to $262,000 annually), monthly health insurance contributions of $1,000, fifteen days paid time off per year, and variable commission compensation targeted at $175,000 annually. The specifics of the commission plan were referenced as being contained in an annex document which Raczkowski claims was never provided despite repeated requests during onboarding.
In lieu of the missing annex document, Raczkowski reports that CEO Rikkert Engels sent him an email on July 22, 2025 attaching a spreadsheet titled “Bonus structure Ron v1.2.” This spreadsheet allegedly established specific performance targets and outlined the commission calculation methodology for the second half of 2025. Both parties agreed via email correspondence that this Bonus Plan Spreadsheet would govern commission payouts for that period.
Under this plan’s terms at full achievement of all targets for July through December 2025 (H2), Raczkowski would be eligible for $87,500 in commissions—half the annual target—based on pro-rata achievement across four categories: new services revenue; new software revenue; Knoodle pilot deployments; and Knoodle revenue. Targets were set in euros but paid out in U.S. dollars according to company formulas.
Raczkowski claims he generated €2,258,008.22 in combined services and software revenue during H2 2025—about 83.6% achievement against minimum eligibility thresholds set at €2.7 million total—and thus earned $73,176.19 in commission under Xillio’s own formula.
Despite these results and what he describes as clear documentation supporting his eligibility under both written agreements and internal spreadsheets created by Xillio itself, Raczkowski alleges he did not receive any commission payments due either under the original quarterly schedule or an orally modified semi-annual payment schedule discussed with CFO Jana Kortusova after initial delays.
On January 12, 2026 Xillio terminated Raczkowski’s employment pursuant to at-will provisions requiring fourteen days’ notice; his employment ended January 26 without severance or release requirements. Subsequently on February 17 CEO Engels denied all variable compensation via email citing undisclosed discretionary criteria regarding performance and compliance with company policies—a rationale Raczkowski contends was never previously communicated nor included in any formal agreement or documentation during his employment.
The legal filing asserts three main causes of action: breach of contract based on failure to pay agreed-upon commissions; violation of the North Carolina Wage and Hour Act (NCWHA) due to nonpayment of earned wages including required written notices regarding pay policies; and unjust enrichment should no enforceable contract be found governing variable compensation.
Specifically referencing N.C. Gen Stat §§95-25.6 (timely payment) and §95-25.13 (written notice requirements), Raczkowski argues that Xillio’s actions were willful rather than resulting from good-faith disputes over methodology since internal records confirmed amounts owed yet no payments were made even after repeated follow-ups.
As relief from the court Raczkowski seeks compensatory damages covering all unpaid commissions plus liquidated damages equal to those amounts under NCWHA provisions; pre-judgment and post-judgment interest at maximum legal rates; recovery of costs associated with bringing suit; reasonable attorney’s fees; and any further relief deemed just by the court.
The complaint is signed by Philip J. Gibbons Jr., attorney for Ronald Raczkowski at Gibbons Law Group PLLC based in Charlotte, North Carolina (Case ID: 1:26-cv-00312).
Source: 126cv00312_Raczkowski_v_Xillio_US_Inc_Complaint_Middle_District_North_Carolina.pdf
