Legal Question in Business Law in California

draws against future commmissions

I have been working for a company for one month, one week in training and three weeks in the field. I am paid a monthly draw against future commissions in the amount of $4000 month. Currently, my balance is $3369 since I have not sold anything yet. The company is unscrupulous in many ways and I am going to leave my position. I am wondering if the company can come after me for the $3369 that I have been paid as a draw? Please let me know asap. Thank you very much.


Asked on 2/12/01, 2:46 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: draws against future commmissions

You should look at everything you've signed. The employer will hold your feet to the fire over your contractual commitments, and the treatment of those draws is probably mostly, maybe 100%, loans. Even in the absence of a written contract, you would be obligated to refund any unearned money advanced to you on an implied contract or unjust enrichment theory. In sum, if you treat the draws as a gift you can expect trouble. Further, 'unscrupulous in many ways' is not a very good defense theory, even if it might be an excellent reason not to build a career there. Finally, ask yourself whether it would be scrupulous to abscond with the advances as you seem to be considering.

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Answered on 3/27/01, 2:14 pm


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