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what can I do? Wisconsin

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  • what can I do? Wisconsin

    On March 15th I quit my job selling auto parts to dealerships. I started May 14th 2007. When I started I was paid $10/hr plus 25% of commisions over $400 in written sales.(10 x 40 = 400)So if I sold $500 that week they subtract the $400 which leaves $100 and 25% of that would be $25. This is considered a training period until you have a clientel base large enough to go on straight commission. On September 1st I went to straight paid commission.They would give me a draw on paychecks that were less than $10/hr, so that I always made at least $10/hr. I went into the hole because any sales made prior to 9/1 were paid on a written commission. eventually I started to work my out of the hole. I got to $5500 in the hole. On March 15th when I quit I owed them just over $2800. My next commission check as $4200, so after they take the 2800 they owed me just over 1400. When I went to get my check they said i owed them $6400 for the time of May 14th to september 1st as that $10/hr was a draw. 16 weeks x $10/hr = $6400, plus was also told i owed them any taxes they paid the govrement.They showed me paperwork that i signed that said that money was a draw and upon termination of employment the would try to recoup that money. I asked what about the money i had made the company, didnt that matter? No i was told. I ten asked to speak with the owner. when I explained to him that if they try to recuop the money it would be lke i worked for free, and that if the initial $10/hr was draw, then why would anyone in thier right mind not go to straight commission and recieve 100% of the commission instead of 25% of the written. He agreed that it didnt make much sense and said they would do all of the fiures as though i was on straight commision and see where we stand after that. now i keep getting the run around. i was told to come back friday, call to make sure thier ready and thier not and to wait til monday. on monday i was told they would be done and they set me an appointment for today,wednesday a 10:30. but guess what they cant et ahold of the payroll manager. i feel as though i am getting the run around. i am lost and do not know if they are doing anything wrong. I apreciate any help. thank you

  • #2
    I'm not sure whether they're doing anything wrong either. A salary based on a draw against commission and "reconciling" that when the employee leaves is not illegal. I'd suggest you give WI's Department of Labor a call (the Department of Workforce Development) and see what they say. 608-266-6860


    • #3
      I do not think you owe the employer anything. The employer is required to settle the commission, under FLSA part 516.16, earned/paid at least every month, as a minimum. Once the settlement is completed, it starts all over again. The main reason is to prevent this exact issue from happening. If the employer failed to have a regularly schedule settlement period, the commission payment arrangement may be denied by the federal Labor dept, and if over time was worked, over time must be paid.

      Without a settlement period the employee is never out of the hole...

      516.16 Commission employees of a retail or service establishment exempt from overtime pay requirements pursuant to section 7(i) of the Act.

      With respect to each employee of a retail or service establishment exempt
      from the overtime pay requirements of the Act pursuant to the provisions of section 7(i), employers shall maintain and preserve payroll and other records containing all the information and data required by 516.2(a) except paragraphs (a) (6), (8), (9), and (11), and in addition:

      (a) A symbol, letter or other notation placed on the payroll records identifying each employee who is paid pursuant to section 7(i).

      (b) A copy of the agreement or understanding under which section 7(i) is utilized or, if such agreement or understanding is not in writing, a memorandum summarizing its terms including the basis of compensation, the applicable representative period and the date the agreement was entered into and how long it remains in effect. Such agreements or understandings, or summaries may be individually or collectively drawn up.

      (c) Total compensation paid to each employee each pay period (showing separately the amount of commissions and the amount of noncommission straight-time earnings).

      "A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'" (Author unknown)


      • #4
        You have to be paid for work done

        The law requires that people who work be paid at least the minimum wage. Working for free is never acceptable. Hopefully this link will help.