Sales Commissions |
| California Labor Code Section 221: |
It shall be unlawful for any employer to collect or receive from an employee any part of wages theretofore paid by said employer to said employee. |
Chargebacks are illegal |
Commissions are wages, and an employer cannot make deductions from wages for any reason beyond the fault of the employee. Many sales compensations programs have a charge back feature that reduces future commissions or remits past commissions when the customer fails to pay, the employee leaves the job, or for other reasons unrelated to that particular sale. Such commission chargeback schemes are unlawful under California law. |
| WAGE AND HOUR LAW- article from the "California Employment Law Letter" - April 14, 2006 |
| Wage and hour violations serve as basis for unfair business practice claim |
| In a recent case from California's Second Appellate District, telemarketers who sold newspaper subscriptions sued their employer, claiming violations of federal and state labor laws. After the trial court granted a pretrial dismissal, the appellate court considered (1) whether a state unfair competition claim could be based on the federal Fair Labor Standards Act (FLSA), (2) whether the employees qualified for the commission exemption from California overtime laws, and (3) whether the employer lawfully deducted points employees had earned from a sale if the customer later cancelled the subscription. Deciding the FLSA doesn't preempt the unfair business practice claim and that the employer could be liable for the wage and hour violations, the appellate court ruled that the case should go to trial... |
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Thierman Law
Firm, A Professional Corporation Labor & Employment Attorneys 7287 Lakeside Dr. Reno NV 89511-7652 Phone: (877) 99 LABOR or (775) 284-1500 |
Admitted in all California and Nevada State Courts, all Federal District Courts located in Nevada and California, Courts of Appeal for the Ninth and District of Columbia Circuits and the US Supreme Court. |