Paying company back for draws against commission upon termination in North Dakota

[derekjon3]

I recently quit my job as insurance agent to pursue another line of work. The company is now coming back to me saying that because I was paid a draw against my commissions in both January and February, I owe them the difference between what my actual commissions were and the amount that they had actually paid me. There was no agreement that I was aware of in my contract stating this. Do they have grounds to do this?

Thanks for the help!

[LConnell]

They can't unless it is in writing. However, it would be highly unusual for an insurance company to not have some sort of draw agreement in place. Are you sure that you weren't asked to sign one at the time you were hired?

[derekjon3]

I am checking into what I did actually sign now. Let's say for example that I worked there for 8 months instead of 2, and the amount owed is significantly larger (right now it is at $1800, I collected $5500 and they are saying actual commissions were $3700 but if I had worked for a longer period of time and the amount was say $7-8K), doesn't this almost constitute some sort of trap in that you can't quit because the amount owed is so large that quitting would be impossible due to the large amount necessary to pay back? The reason for the difference in draw vs. commission is because the company did not set up the contract correctly (that is a big reason as to why I quit) and they have since changed the working arrangements with the two others that are currently in the agency and started at the same time that I did. Thanks for the help!

[LConnell]

It is legal as long as you were making at least minimum wage after the draw is repaid. It sounds like you were misled. However, there isn't a lot you can do if they can show that you agreed to the arrangement and you were being paid minimum wage.