NYS Commissioned sales question New York

[Radioboy]

I work for a company as a 100% commissioned salesperson. I am paid on sales however, if a client doesn't pay within 90 days, I have the amount originally comissioned deducted from my pay. If the client pays by 120 days, I am refunded only 50% of my original commission. Is this legal for a company to reimberse 50% of the comission if 100% of the money owed is collected?

[Pattymd]

Generally speaking, yes. Personally, I wouldn't structure it that way (I'd pay ONLY after the specified amount is collected), because it's always easier to pay additional commissions as the account is paid rather than take it back AFTER said commissions paid to the employee; better employee relations, too. But, there is nothing in state or federal wage and hour law I know of that is going to prohibit the plan from being designed that way.

I take it you're outside sales?

[ScottB]

Yes, that is legal. Darn little isn't when it comes to commissions.

The usual arrangement is to withhold commissions until the client pays. An alternative -- no pay until the client pays AND the guarantee period has expired.

I don't know what the terms are for your sales, but to collect anything over 90 days takes a lot of time, effort and money on the part of the company, so I don't blame the company for giving you a reduced commission on sales paid from 90 to 120 days.