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Draw against commission

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  • Draw against commission

    Hi,

    I was given a base salary of $48,000 when I took a sales job 18 months ago. Right around my 1-year anniversary, I was told by my employer that my base salary of $48,000 would change to a draw against commission.

    I am just about ready to leave the company for another position, and am almost certain that my profit over the last six months is less than what I have been paid.

    I was never given anything in writing, nor did I sign anything, regarding the change from salary to draw against commission, and would like to know if I would be responsible for paying the employer any difference.

    My employer is in New York, and I live/work out of Connecticut.

    Thank You,

    Tom

  • #2
    Are you saying that they're going to enforce this draw against commission retro-actively (i.e. apply it to your first year of employment?) or was this change just made going forward from the date they informed you?

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    • #3
      Just from the date they informed me.

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      • #4
        Then what they did is lawful, if not very popular. They couldn't retro-actively enforce a draw against commission program but they can change your compensation plan going forward anytime they like as long as they tell you. They could have dropped you to minimum wage if they wished.

        Your option, if you didn't care for the new terms of your employment, was to say "adios" and walk out the door. (Not practical, I know, but since you're free to walk away from a job any time you like, your employer can change the terms of your employment pretty much as they like.)

        If you are in arrears on your draw vs. commission comp plan, you can always refuse to pay the difference and wait and see what the company does. It's possible they may just let it go. I

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