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Commission Outside Sales and Un-reimbursed Expenses in New Jersey

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  • Commission Outside Sales and Un-reimbursed Expenses in New Jersey

    In New Jersey it is legal for a company to reduce commission to a outside sales rep for wages of the support staff?

  • #2
    Unless there is a legally binding and enforceable contract/cba that says the commission cannot be reduced, sure it is.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


    • #3
      Certainly possible. If you are talking about federal law only (FLSA), the following factsheet will spell out the federal rules.

      NJ may or may not have some formal rules of their own. Not my state. Maybe someone else can address NJ statutory law on this subject (if any). A few states may indeed have laws which would find this questionable.

      Which leaves Common Law. Lets say that Bob is Outside Sales, sells wigits door-to-door and historically gets 10% of gross wages as his commission (and sole compensation). Lets say Jane (his boss) just dropped what you said on him. On a go forward basis, absent a conflicting NJ law or CBA or contract, this is likely legal. HOWEVER if this is done retroactively againsts sales already made, this is likely illegal under Common Law. Meaning a court action (including small claims court) would likely have traction. There is an extremely well established Common Law principal that changes to Employment At Will compensation (which is what is true for most employees) can be done a go-forward basis only.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)