Legal Question in Employment Law in California
Can an employer deduct overhead/cost of business from the amount you should be paid commission on before he determines commission. For example if the profit on a deal is 10k and he deducts 3k for overhead (electricity, rent, salaries, other business expenses) and then pays us our percent on 7k is that legal?
Asked on 1/09/11, 10:08 am
2 Answers from Attorneys
Terry A. Nelson
Nelson & Lawless
Commissions can be based and computed upon any basis the employer decides. Many pay a % of 'net' profit, which is what you are describing.
Answered on 1/14/11, 10:55 am
It depends on whether or not that is what your commission agreement provides.
Answered on 1/14/11, 5:05 pm
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