Wan an earned sales commission be taken back and what deductions can be made from my paycheck?
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Wan an earned sales commission be taken back and what deductions can be made from my paycheck?
I sold a sofa and got a sales commission of the sofa I sold him. A month later the customer returned the sofa. My employer said I’m obligated to pay back the commission I previously earned and that they will take it out of my next month’s payday check. Can they do that?
Asked on April 15, 2016 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Yes, you have to repay a commission if the item sold were returned and the customer given his/her money back: you are commissioned on the money your employer makes on sales, and in this case, they did not make anything: ergo, no commission. They can charge this amount back against your commissions, and take it out of a future commission check.
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