Legal Question in Employment Law in California

Commission Guarantee

I accepted a sales position with a company headquartered in Dallas, Texas. I am ''home-based'' out of Los Angeles, CA. The offer letter stated that company ''is pleased to extend a commission guarantee for the first quarter of you employment. This commission guarantee amount will be the greater of your earned commissions or $2,500 per month''.

From my first quarters commission reports, they are accruing the negative difference against future commissions.

This practice is more like a ''draw'' or ''advance'' rather than a ''guarantee''.

Is this legal?


Asked on 8/02/02, 6:25 pm

1 Answer from Attorneys
Martin Lathrop Russakow, Ryan & Johnson

Re: Commission Guarantee

I have to review the entire contract or agreement between you and your employer before telling you whether they are violating it or not. Feel free to contact me or fax to 626.683.8870 for some free advice-Martin

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Answered on 8/06/02, 8:24 pm


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