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working on commission collecting unemployment California

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  • working on commission collecting unemployment California

    my son recently was laid off from a mortgage company and has been collecting unemployment. he has just started working some for another mortgage company on commission only. they promised him he could make a great deal of money and he may in the future. however right now he is making nothing and it appears no one in the company is making anywhere close to what the company told him he could make. can he continue to collect california unemployment benefits since he is not making anything right now? he was told by someone he could and if he losses the unemployment benefits he could not make his mortgage payments and likely loose his house.

  • #2
    He should talk to the folks in the unemployment bureaucracy.
    “Be not niggardly of what costs thee nothing, as courtesy, counsel, & countenance.”

    --Benjamin Franklin

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    • #3
      Is he an employee or an independent contractor?
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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      • #4
        he is an employee

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        • #5
          "Commission-only" nonexempt employment is not allowed in California and that he must be paid at least minimum wage. I'm assuming he is classified as nonexempt? Even if classified as "exempt", with the exception of outside salespersons, he would have to be paid a fixed weekly salary of at least $600.
          http://www.dir.ca.gov/IWC/IWCArticle4.pdf

          The root of the problem appears to be that he should be earning wages during this period. My first recommendation is that he contact the DLSE about the nonpayment of wages.

          Sounds like a promise with no legs at best, and a scam at worst.
          Last edited by Pattymd; 11-11-2007, 06:09 AM.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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          • #6
            I agree - have him contact the Ca. DLSE for wage payments. He might to consider looking elsewhere for work.
            Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

            Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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            • #7
              he is outside sales as a account exec selling wholesale mortgage funding to mortgage brokers.

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              • #8
                If you'd told us that at the beginning, we wouldn't have had to go through all this. Outside salespersons are exempt in California and do NOT have to be paid a salary or even minimum wage.

                Now, back to the UI issue. What he's going to have to do is report commissions as they are "earned" (not when they are paid) and in order to do that, he's going to have to look at the commission plan/agreement. If he does not have one, he needs to ask for it.
                I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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                • #9
                  sorry about not saying he was an outside account exec. in reading the california unemployment info on their site it looked as though sales people working on commission were not eligible for unemployment benefits if they were working full time even if they are not yet making any money from commission. he is not sure if he should stop working to continue getting his unemployment and pay his bills. i hope the california unemployment will continue his benefits for a little longer so he has a chance to make a few sales.

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                  • #10
                    Of course, if outside salespersons are not eligible for UI under the situation you describe and he continues to file his continuing claim and continues to receive benefits, at some point it may be found out and they will sue for the money back.
                    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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                    • #11
                      sorry you misunderstood me. he is not trying to collect and work if he is not entitled to. he was going to drop the unemployment, but someone said he could still collect benefits because he is paid only commission and so far has not sold anything so he has not made anything. this was original post, does anyone know if in california a outside salesperson paid commission only and has not made any commissions yet can continue to collect unemployment. HE IS NOT TRYING TO SCAM ANYONE!

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                      • #12
                        in reading the california unemployment info on their site it looked as though sales people working on commission were not eligible for unemployment benefits if they were working full time even if they are not yet making any money from commission.
                        I'm taking your word for it. He can always call or email the EDD to confirm (email will probably get him a response after the holiday; calling the EDD is a nightmare).
                        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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