Legal Question in Employment Law in California

Commissions & Discounts

There are three of us in the service drive and we each get paid a small salary plus commission on our individual sales (I don't get paid on what the others sell). Our commissionable gross is determined after discounts so we don't get paid on money not received, however, they are adding all the discounts together and subtracting the total from each of our commissionable grosses. Meaning, if we each have $5,000 in discounts on our repair orders we all have $15,000 subtracted from our commissionable grosses. So, while $15,000 was "given back" to our customers the store doesn't pay commissions on $45,000. We never signed any contract or agreement to this. Is this legal? Are we due back commissions that should have been paid? If this has caused a hardship would we be due additional compensation?


Asked on 10/14/98, 10:11 am

1 Answer from Attorneys
Stuart Kaye Law Offices of Stuart M. Kaye

Re: Commissions & Discounts

It is unlawful in California for an employer to "offset" an employee's wages, by business losses.

If your employer is factoring in business losses in paying your wages, you may be able to recover the difference. File a claim with the California Labor Commissioner.

Stuart Kaye

Law Offices of Stuart M. Kaye

8355 La Mesa Boulevard


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Answered on 12/29/98, 9:08 am


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