Legal Question in Employment Law in California

Commission Payback one year later

I am a sales rep. I closed a large deal in q3 of 2001 and was paided commission on it. Now the company believes we were over paided for that deal. They are looking for ways to get that money back probabley in the form of future commissions earned in 2003. Is it legal in the state of California for a company to take back commissions paided in Oct 2001 now that it is Feb 2003? If it is what is the exact law that it violates?


Asked on 2/12/03, 2:03 pm

1 Answer from Attorneys

Re: Commission Payback one year later

The company is allowed to prospectively change the commission rate on work not yet started, but cannot retroactively try to recoup commission already earned. The Department of Labor Standards Enforcement may provide more info.

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Answered on 2/12/03, 6:02 pm


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