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Overpayment of commission for 3 years California

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  • Overpayment of commission for 3 years California

    I recently left a company that had overpaid my commission for over 3 years. In July of this year they had all the Sales Reps sign a promissary note to repay or be fired immediatly. My question is I don't have the 16,937.97 to write them a check can I pay them over time? And what about taxes paid on this money? Not sure what to do.

  • #2
    As you have already left the company, being fired is no longer an issue. And the CA legal impediment on payroll deductions is no longer an issue since you are no longer an employee.

    What is left is:
    - Do you actually owe the employer the money?
    - Will they take you to court to get the money?
    - Can the employer win a court action against you?

    No one on this website has read your commission agreement and related documents and would have much of an opinion on this. I can give you a pointer to the CA-DLSE. I am going to suggest that your starting point is to read the CA rules on commissions and see if you actually owe the money.
    http://www.dir.ca.gov/dlse/Manual-Instructions.htm
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Interesting fact is that until July of this year I could not really tell you how I got paid because to my knowledge nothing was in writing that I ever saw. I worked as an Outside Salesperson on commission. I recieved a paycheck every two weeks that was considered my draw. I was told that I also got vacation and sick pay but there was no extra pay just my draw against my commission. In July they gave us binders that showed how we made money on each item and depending on how much we charged or set price to the customer. Before that I never saw anything in writing but could only guess how much I made when I recieved quarterly commission statements telling me how much I owed the company after draw payouts. Before we had this economy problem Sales Reps were usually given a time frame to increase sales or moved back to an inside sales job. Outstanding overpayments were written off. Now the company is going after the Sales Reps. The promissary notes that we signed held off payment till April of 2010 when they would start payroll deduction until the debit was paid off. We were strong armed into signing by threat of imediate termination if we did not sign these notes with out seeking legal counsel. According to the note it says that it is due and payble on termination and that they can take me to court. I will be calling them tomorrow to ask if they can use some of my private stocks in the company to repay the debit. This is an ESOP company and I have over 30,000 in shares but I know that this is not in thier favor since it is at thier descrition when to pay out and the stocks are then given back to the existing share holders. Unfortunitly when I left the company I had to surrender the binder that showed how we got paid. I can only hope that they will use some of my stocks as repayment heck they can have it all.

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      • #4
        You have the right under Labor Code 1198.5 to inspect your personnel records. What I did was to make a written request to HR. In about 3 weeks, I received copies of everything that had my signature on it. That included a full description of the pay plan.

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