Announcement

Collapse
No announcement yet.

Draw against commission Florida

Collapse
This topic is closed.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Draw against commission Florida

    My wife's workplace has made her sign a draw against commission contract. The contract states that if she won't make commission equal to minimum wage she will still get paid at least minumm wage but she will owe the company money so they will deduct it from her next commission check. Is this legal? She says one of her colleagues owes the company more than $3000! She sells cellphones for AT&T authorized dealer.

    Eran

  • #2
    Originally posted by eranzucker View Post
    Is this legal?
    Yes.

    Originally posted by eranzucker View Post
    She says one of her colleagues owes the company more than $3000!
    It is scary, for a commissioned sales rep, when the draw gets up there.

    I have no idea what the weekly draw is, but the company will have a difficult time recovering any draw owed when an employee is terminated. It is in the company's best interest to look at the potential of the employee to pay off the draw by making sales.

    If that is not likely to happen, the employer and employee should part ways. The company will probably "eat" the draw. It will make them gag.
    Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

    Comment


    • #3
      I take it your wife is exempt under the Outside Sales classification?
      http://www.dol.gov/esa/regs/complian...tsidesales.pdf

      If not, we have a whole different issue, as nonexempt employees MUST receive at least minimum wage. Let us know.
      Last edited by Pattymd; 06-12-2008, 09:56 AM.
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

      Comment


      • #4
        [QUOTE=Pattymd;979720]I take it your wife is exempt under the Outside Sales classification?
        http://www.dol.gov/esa/regs/complian...tsidesales.pdf

        QUOTE]

        I read the definiton and I don't believe she can be classified under the Outside Sales Classification. Her primary job is selling cellphones but she works in a store. She never had to sell anyting in any other location but her company's stores. On her paystub the pay breakout shows only commission. Luckly we never got to a situation where she didn't sale enough....

        Thanks for the quick respond!

        Eran

        Comment


        • #5
          If she's selling in a store, you're right, she doesn't qualify for the exemption. Therefore, she must average at least minimum wage on a weekly basis and such minimum wage cannot be retroactively recovered if commissions are less than minimum wage.

          For example, let's say she worked 40 hours in a workweek. Minimum wage in Florida is currently $6.79 per hour. That's $271.60. Now, let's say her commission for the week was $100, but is wasn't paid until a subsequent week. The employer cannot recover the difference. However, let's change the commission to $300 for that same week; if the commission plan/agreement provides for it, they COULD pay commission of only $28.40 and THAT would be legal under wage and hour law.

          Does that make sense?
          Last edited by Pattymd; 06-12-2008, 10:32 AM.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

          Comment


          • #6
            Originally posted by Pattymd View Post
            If she's selling in a store, you're right, she doesn't qualify for the exemption. Therefore, she must average at least minimum wage on a weekly basis and such minimum wage cannot be retroactively recovered if commissions are less than minimum wage.

            For example, let's say she worked 40 hours in a workweek. Minimum wage in Florida is currently $6.79 per hour. That's $271.60. Now, let's say her commission for the week was $100, but is wasn't paid until a subsequent week. The employer cannot recover the difference. However, let's change the commission to $300 for that same week; if the commission plan/agreement provides for it, they COULD pay commission of only $28.40 and THAT would be legal under wage and hour law.

            Does that make sense?
            Yes, makes perfect sense to me. Since she was made to sign this illegal pay structure contract, should I contact a lawyer to legaly get her out of it? I'm not really sure what should I do.....

            Eran

            Comment


            • #7
              You can certainly contact an attorney, but if the provision is illegal it couldn't be enforced anyway.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

              Comment


              • #8
                Originally posted by Pattymd View Post
                If she's selling in a store, you're right, she doesn't qualify for the exemption. Therefore, she must average at least minimum wage on a weekly basis and such minimum wage cannot be retroactively recovered if commissions are less than minimum wage.
                She is getting minimum wage for hours worked. The draw won't take her to less than minimum wage. As I stated above, the company is not likely to be able to recover the draw if the employee is terminated for any reason.
                Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

                Comment


                • #9
                  Originally posted by ScottB View Post
                  She is getting minimum wage for hours worked. The draw won't take her to less than minimum wage. As I stated above, the company is not likely to be able to recover the draw if the employee is terminated for any reason.

                  I think we agree.
                  I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

                  Comment

                  Working...
                  X