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commission employee deducted for vacation time

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  • commission employee deducted for vacation time

    I am paid on a commission only basis in NY State. I am (per company plan) entitled to 2 weeks "PAID" vacation and 1 week "PAID" sick leave. Here's my question. During the month on a weekly basis I recieve an advancement (draw) on my monthly sales commissions and at the end of each month a reconciliation is done for commission balance under/over payment. However during any given month should I decide to take the "paid" vacation option, the amount that I was paid for vacation time is deducted off my commission.

    hence sample scenerio-- 1) monthly commission earned equals $3000
    Employer paid me @$100.00 day x 17 days actually worked for month=$1700 plus the one weeks vacation $500.00 for a total of $2200 which
    leaves employer owing me $800.00
    but is this really paid leave since it is deducted from my commission which I would have gotten at the end of the month anyway.
    or 2) should I receive $1300.00 at end of the month reconcilliation from employer? $3000.00 earned- minus actual pay for hours worked $1700 leaving $1300 owed by company to me? I don't want to cheat my company but I don't want to be cheated either which would be the correct way?
    Thanks!

  • #2
    Paid Vacation and Commissions

    There is no "right" way...as paid vacation and paid sick are not mandated by the state so the amount to be paid is up to the employer. What does the plan document say?

    I have seen paid vacations handled both ways...one in which the employee receives base pay only and a second where the employee receives a base plus an average of commissions for the days in which he/she worked. However, the primary method of calculations for paid vacation typically has the employee earning the base pay only.

    Let me know if you have any other questions.
    Lillian Connell

    Forum Moderator
    www.laborlawtalk.com

    Comment


    • #3
      no base pay

      they don't pay us a base pay- they allow us to get an "advance on commission". So if they pay us an advance of 8.00 per hour and we sell (for example) nothing for the month - at the end of the month we would owe back to the company the difference between the 8.00 advance and minimum wage x the # of hours we worked.
      Since there is no base, for our vacation time they calculate that we would work 40 hours (that's the normal) x our "advance draw rate". again at the end of the month if we haven't earned enough to cover this amount we are required to payback the difference. As company says "it was only a good faith advance"
      so basically from your response the company doesn't have to follow any set rules in paying us for our vacation time. I don't see how it is ok for them to deduct what they pay us for our vacation/sick time from our actual commission sales $.
      if I earned 1000.00 a week in commission for the first 3 weeks of the month= $3000 but recieved as advance on sales ($500 per week x 3 weeks=$1500 )and then took the 4th week as vacation (paid advance draw rate of $500.) the company would owe me $1000 in reconcilled commission by their calcuations. I believe since the time off was supposed to be paid that they would owe me $1500 the difference from actual sales commission $3000 and "pay recieved $1500 does this make sense or am I just total confused on what a "paid vacation" really means?

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      • #4
        Vacation

        I understand your confusion about vacation. Vacation is not required by federal or state law. So, that is why an employer can create its own rules regarding the payment of the vacation. In your case, it is not truly pay as much as a draw upon future sales. The amount of draw permitted, and any money that the employer wishes to give you to make up the difference, is completely up to them.

        Let me know if you have any other questions.
        Lillian Connell

        Forum Moderator
        www.laborlawtalk.com

        Comment

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