Legal Question in Employment Law in California
Request to Pay Back Commissions already paid
I have been paid on product shipped with my company for quite
some time now (5 years). I have built up these accounts and
based on past actions to other employees, I am sure the president
feels I am making too much money. He is now asking that I pay
back any monies on ''consigned'' inventory sitting in my customers
warehouse. He sat me down and explained that this really wasn't
part of my commission monies and I need to start paying him back.
He also wanted me to agree to this in an email, which I will not. I
think it is fair to change the commission structure going forward to
based on paid for product, but I know the president will just cut my
commission so low that he will get this money back one way or
another. I do not have a contract (He would never produce one or
even put anything in an email) But I do have all monies earned
and paid in an excel spreadsheet from accounting. It seems like a
no win situation as either way, he will make my life miserable. Can
he ask for this money back and can he just cut commissions on a
whim?
3 Answers from Attorneys
Re: Request to Pay Back Commissions already paid
Although so-caled "charge-backs" are often unlawful, we would need a few additional facts before rendering a final opinion on your situation. Please contact us for more information.
Re: Request to Pay Back Commissions already paid
You are certainly entitled to be paid on sold products, but if the products are returned, then it is a disputed issue whether you can be charged back on them. The compnay can set and change commission structure, just as they can hire and fire at will. Feel free to contact me if they force the issue of charge backs; we may be able to 'persuade' them not to do so.
Re: Request to Pay Back Commissions already paid
I think you have read the situation quite accurately. If there is no contract, a judge would probably want to know why your employer has paid you for the past 5 years consistent with your understanding of your compensation agreement. Past practice is evidence of the agreement. And employers cannot change the terms of a compensation agreement retroactively.
But, upon notice, your employer can change the terms of your compensation to anything he wants to, as long as minimum wage laws are met. If this is his way of getting the money back, you have a decision to make. Do you still want to work there?
If this escalates, you probably should seek the advise of experienced employment law counsel.
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