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Is this legal? Florida

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  • Is this legal? Florida

    my father works for a company in florida that pays him on a weekly draw on a monthly commission. he does services at people's homes and collects the money at the time of service when possible, but customers are allowed to mail in their payments later. this means that sometimes they mail their payment late. his employer says that after 90 days have passed, even if the customer sends payment that my dad doesn't get paid because it went over 90 days. plus there are times that my dad goes over his commission report with a fine tooth comb, comparing it with records he has to keep to keep things honest. he consistently finds accounts where he collected money at the time of service but is not paid for it. also even in times when he collected the check from a customer say two months after the service, then they will wait to post it until after 90 days have passed so he doesn't get paid the commission. it just seems really fishy to me. is this legal? and if it's not what can he really do?

  • #2
    When you say he does services at people's homes, that is another way of saying that he does not qualify for the Outside Sales exception and cannot be paid on a 100% commission basis that ignores actual hours worked. This means legally he is subject to some type of minimum and overtime rules. This could be the so-called "normal" rules or could be the Retail/Service Establishment rules.

    The key is which ever set of rules is being used, there is a legal requirement that a payment of a certain size based on actual hours worked during the workweek must be made fairly quickly. If the employer wishes to call this payment a "draw" they can, although this payment is unconditional and the word "draw" implies something else. Then the balance of payment (commission) then is made later. There is nothing inherently illegal about basing the balance commission payments on net payments actual received by customers. FL is a state with very little in the way of state labor law, that makes next to no effort to enforce what little laws they do have. But making commissions based on actual net payments received from customers can be legal in all 50 states if done correctly. The key is making sure that a legal up front payment based on hours actually worked is made in a timely manner and that what commission agreement that exists is followed. This second issue would basically involve you finding a local FL attorney who actually reads the agreement.

    Based on what you have said so far, what is being done could be legal or could be not legal.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)


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