Legal Question in Employment Law in California

Can i legally be terminated if i refuse to sign employee agreement? I am challenging the paragraph in the agreement stating that sales reps are responsible for customer bad debt including insufficient funds checks while employer is not giving us any protection. I am in a commission only envioronment and bad debt can be taken out of our commissions? Is this legal? If i don't sign then i can be terminated.


Asked on 12/21/10, 10:33 am

1 Answer from Attorneys

Terry A. Nelson Nelson & Lawless

In general, sign or be fired, except that: the employer in CA is not entitled to deduct money from employees for company losses and damages, such as bad debts you describe. The company can certainly 'recall' and recover the commissions paid you on them though. You don't get paid commission unless the company gets paid.

Now, if you are fired for refusing to sign or agree to what is actually an 'illegal' demand about your compensation, then you might have a cause of action. If so, feel free to contact me.

In general, the employer is entitled to set and change hours, duties, titles, compensation, benefits, leaves, vacations, holidays, policies, rules, etc. just not retroactively. Employees have the 'right' to pay and employee benefits per the CA wage and hour laws, and formal company policy as agreed, to be provided a 'safe' workplace to minimize risk of injury, and sometimes are entitled to certain medical/pregnancy leave rights. That's about it. There are no laws against 'unfair treatment' or poor management. In general, unless an employee is civil service, in a union, or has a written employment contract, they are an 'at will' employee that can be disciplined or fired any time for any reason, with or without �cause�, explanation or notice, other than for illegal discrimination, harassment or retaliation under the ADA disability, Civil Rights [age, race, sex, ethnic, religion, pregnancy, etc], Whistle-blower, or similar statutes. The employee's goal should be to keep the employer happy.

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Answered on 12/26/10, 12:56 pm


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