Legal Question in Employment Law in California
Draw against bonus v.s draw against comission? Draw against comission laws in california are easy to find, but I can not find anything about the laws that govern draw against bonus. Long story short, I'm a tax preparer, this year got a new contract with a new pay scale. We went from having a damn good hourly wage with a small bonus to minumum wage draw against a bonus. The bonus was suposed to be 14% of our sales with a 2% performance bonus on top of our base bonus rate. a single line in out contract stated that the season must be finished with the company for bonuses to be paid. Anyways about 2 and a half months into our 4 month season and after earning over 100k in sales for my boss I was fired. Many of us were fired. With no explenation. Our decided that it was cheaper to fire us then it was to pay our bonuses. So after peak he sinple fired 70% of his employees. Anyone that had been with him less then 3 years. So my questions are... what is draw against bonus? I can't find it in any way shape or form in state labor codes, like he just made it up. And can he just fire us to not pay us? If the contect was worded draw against comission then the answer is no, we already earned the comission and he can't take it from us. Does calling it draw against a bunus protect him against the draw against comission laws? Anyone ever heard of anything like this befor?
1 Answer from Attorneys
No, he cannot simply fire and not pay the commissions. I would need to look at what the contract said, and what you earned to determine the issue of whether the pay plan was legal. I handle cases all over CA and would be happy to consult on this. Thank you and good luck.
Alden Knisbacher
Knisbacher Law Offices
415-522-5200
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