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commissioned sales rep question

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  • commissioned sales rep question

    Straight commissioned sales rep. Employer pays withholding etc (not a 1099 employee).

    Several questions have arisen regarding 'requirements/conditions of employment'. Most recently (today) employer is requiring me to 'up' my personal automotive insurance coverage policy to $250,000 bodily injury per person $500,000 per accident. I am NOT provided a company car. I own my own vehicle and pay the vast majority of expenses related. The company is not offering to asborb the cost of this increased cost in increased coverage. I am a sales rep who drives approx. 4000-5000 miles/mo.

    Secondly, last fall (september) the company advised that due to unaccountable inventory losses sustained by the company ($30,000) each rep was being assessed a $5,000 charge to cover the losses. Reps do handle inventory to and from accounts, but the company was not able to clearly identify which rep or which territory was responsible for the losses. As a result my expenses ($500/mo auto $200/mo cell phone) are being reduced by a little over $250/mo for 18 months to 'pay off' this 'debt'. Is this legitimate??

    Lastly, up until December, the employer was reducing my commission check monthly, for the cost of product given at no charge to accounts for evaluation. I have now learned that in most cases, the distributorship is not charged by the company for these items. Can they charge employees for products that they themselves are not being charged for??

    I did some digging today and I have to say, I honestly feel like many of these situations result in what amount to 'kickbacks'.

    What is and is not allowed as reduction in commissions/benefits/expenses under NYS and or federal labor laws? Can this employer require me as a condition of employment to obtain excessive automotive coverage? (I suspect this has been devised as a way to cover their own liability in the event I am at fault for an automobile accident while driving for work.) Do these 'deductions in pay and benefits' qualify as 'kickbacks' or are they otherwise prohibited?

    Any help would be great.

    04/26....can anyone help out here? I don't want to reply to my own thread because it might appear that the question has been answered. Bueller???
    Last edited by cvhsquared; 04-26-2006, 01:56 PM.
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