Employees put in significant effort to earn commissions, which should not be docked unless the law explicitly allows for it. This piece delves into three commission practices that could potentially entitle you to back pay and/or penalties under California law.
- Are Your Earned Commissions Deducted for “Price Adjustments”?
It’s a regular scenario: customers purchase an item and later receive a credit from the company when the item goes on sale post-purchase. While this is a standard practice, reducing your commissions for these price adjustments is not. California law bars employers from deducting commissions based on price adjustments happening after the initial purchase. If you’ve experienced this, you could be owed back wages, penalties, interest, and additional compensation. Reach out to us for a complimentary consultation.
- Are You Given a “Commission Advance” Subject to Reduction for Returns?
Receiving a “commission advance” that only materializes as “earned” post a specified return period (e.g., a 180-day return period) mandates that the employer provides you with an updated paystub reflecting the commissions “earned” each period at the return period’s conclusion. This is crucial because some firms fail to inform their employees about the “earned” commission amount post the return period, leaving them in the dark regarding their actual earned commissions. This action contravenes California law.
If you suspect this scenario applies to you, we invite you to reach out for a FREE consultation. Our attorneys are ready to review your paystubs and ascertain if they lack accurate information.
- Separate Hourly Pay for Rest Breaks for Commissioned Employees!
Hourly employees in California have been long entitled to a 10-minute paid rest break for each 4-hour work period. The law now extends this right to commissioned employees as well! If your earnings are solely commission-based, you must now receive separate pay for rest breaks. Employers can no longer deter commissioned employees from availing rest breaks or impose a commission pay loss during a rest break. Now, commissioned employees should receive separate pay from the employer during rest breaks. If you were a commission-only employee and didn’t receive separate hourly pay for your rest breaks, contact us for a free consultation. You might be entitled to pay for each rest break, alongside penalties, interest, and other damages.
There are various other concerns impacting commissioned employees. If you have any inquiries regarding commission pay, feel free to contact the seasoned attorneys at the Law Offices of Kyle K. Lauby at 888-888-8888 for a complimentary consultation.