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Can an employer hold earned commissions Texas

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  • Can an employer hold earned commissions Texas

    My husband is a assistant service manager for a automotive repair shop (nationa chain), the past 3 pay checks they are holding a percentage of his commissions. The reason they are holding them is because the company does random customer follow ups and if the customer has any negative to say such as car wasnt ready or took to long to repair, bill was too high, blah, blah then they can hold the commission he made when he took in the car. This doesnt apply to the tech that actually does the work, he is still paid 100% of his commissions. They also do not advise or show him which work order had the negative on it. He has to "earn" it back. Now during this time he has also had to carry the position of the service manager as the regional took his away and sent him to another store in July and had my husband do the work of both positions. When he was hired in 5 years ago he was hired as hourly and last year they forced all positions with the exception of the department managers and up to take a $5.00 per hour decrease and then get paid commissions His job is to make sure the techs are doing their jobs, assign the jobs, work with customers, etc. In carrying the manager position too, he had to schedule employees, get off the counter and do conference calls, go out of town for meetings, etc. The company never has offered to compensate him his loss of income as he did more of the manager duties in which the manager should have been paid salary. He now has a new manager that came in last week and he is able to work his position, however the penalty thing has cost us over $500 and this is causing a financial issue in which we cannot pay household bills.

    Who can he go to to try to get his money that he earned? He is starting to look for another job as the company he has been working for is no longer stable?

  • #2
    Legally, the only people who can be paid "100% commission" (ignoring hours actually worked) fall under the Outside Salesperson exception. Based on what you have said, this is not the case here. This is one of two legal possibilities.
    - The employee could in theory be Exempt Salaried, probably under the Executive exception, possibly the Administrative exception. Under federal rules, the employee would have to be paid at least $455/week and have a number of other requirements should this exception be claimed. Just to be clear, employers never have to use this exception. Microsoft could treat Bill Gates as non-exempt if they wanted to. However, if the employer uses the exception (and the situation is such that the exception is even possible), then all related rules must be followed.
    - Alternatively, the employee would be non-exempt. They must be paid minimum wage and overtime for all hours worked, period, no exceptions.

    The above is federal law (FLSA), valid in all 50 states, even for national chains.

    Your state is not my state, but my understanding is that the state agency who handles wage claims and other complaints is called TWC. Maybe something like "Texas Welfare Commission".
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)


    • #3
      Originally posted by DAW View Post
      Your state is not my state, but my understanding is that the state agency who handles wage claims and other complaints is called TWC. Maybe something like "Texas Welfare Commission".
      Texas Workforce Commission. Close but no cigar.
      Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

      Live in peace with animals. Animals bring love to our hearts and warmth to our souls.


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