Legal Question in Employment Law in California

I work at a commissioned based company selling auto parts in California. Recently one of my sales was subjected to credit card fraud. The company is now revoking my commission which makes sense because they didn't get paid yet there was no training on how to check for fraudulent credit cards nor is there any policies in place to avoid fraudulent credit cards to be used. Is it legal for them to take back the commission?


Asked on 4/26/12, 5:03 pm

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

It depends on whether the commissions were earned or not. If the commission agreement says that commissions are earned simply by booking the business, you have an argument they cannot be forfeited. But if the commissions are earned when the customer pays or upon some other criteria which has not yet occurred, you cannot keep the commissions which are unearned.

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Answered on 4/27/12, 10:43 am


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