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being liable for out of date products. California

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  • being liable for out of date products. California

    I am a hourly sales rep/driver, for an energy drink company, the company i work for say that i have to pay for any out of date products that come back from the field. Not only do I have to pay for it, but I have to pay full price for it and I don't even get to keep the product that is out of code. They also ask for a personal check for the product. So my question is this legal to do in California and if it isn't where can I find that law to show my employer.
    Any help in this matter would be very appreciated.
    Last edited by gruok; 12-15-2007, 02:47 PM. Reason: defined the title to make it more understanding

  • #2
    This seems like it would be a violation of CA Labor Code 2802 which states that (a) An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful. see : section 2802.

    I would think that a product expiring without being sold would be a "cost of doing business" issue. Hold for someone with more direct knowledge of CA law however.


    • #3
      Also, if you had to pay for the expired drinks, would it bring your hourly pay below minimum wage?


      • #4
        Do you receive commissions on your sales? If that's the case and you've be paid commissions on product that is now being returned, I can see why there would be an adjustment in your compensation (which is standard for commissioned sales reps.) I do question the method your employer is using here though. Seems like the appropriate thing to do would be to adjust your commissions, not have you pay for the product.


        • #5
          thanks for the replies. just so you know i don't make any commission on what i sell it (unfortunately) hourly. Also i am not sure if it would put me below minimum wage although i will find out. At my other beverage com. i sold for we made base pay plus commission so if we had any out of dates they just took back the commission we made on it. but here we have to pay full price plus tax and get to keep nothing. so anymore help on this matter would be very appreciated and if i can help with more info let me know thank you again


          • #6
            Full price plus tax and you can't even keep the product? That really sounds like a scam to me. I can see paying the cost of the product if it were a sales thing, but not full price plus tax. That just sounds like it enters the fraud level. Basically, they are saying that if nobody buys their product, then their employees must buy it.


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