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View Full Version : 100% Commission Employee - Chargebacks now that I've left the co California


employee_with_question
02-17-2009, 07:20 PM
Hello,

As of Dec 31, I left a company where I'd worked for over four years. I was an outside sales rep and earning my pay via 100% commissions. Chargebacks are a regular thing, and I had no issue with them while I worked there. But now that I'm no longer an employee, am I still on the hook for years of chargebacks? I do believe I signed a contract saying that I'll pay them back - but I can't find it. But it doesn't make sense that I could be paying them money for literally years (these are long term, 3+ year contracts that can be canceled at any time).

I couldn't find anything in the labor code that addressed chargebacks once an employee left the company. But I did see that in Koehl v Verio that the summary said "The Court held an employer may legally advance commissions to its employees, and by written agreement, charge back any excess advance over future commissions earned should the conditions for payment not be satisfied."

Thoughts? I'll pay if it's legal, but I won't if it's not.

Pattymd
02-18-2009, 02:22 AM
Ask the ex-employer for a copy of the commission agreement/contract and take it to an attorney for review. My recollection is that in your state, the employer is required to provide you with a copy of anything in your personnel file that you have signed.

I'm not an attorney, but this seems SO unfair as to be unconscionable, thus unenforceable.:mad:

Having said that, though, the only way they could pursue now this is to sue, so you could just wait and deal with it if they do.

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