Legal Question in Employment Law in California
I work for a plumbing company in California. We get paid commissions based on a formula. We add up the invoices and subtract materials (parts, fuel, rentals) and a materials percentage from the jobs paid during the pay period. We aren't getting paid for work that is completed but hasn't been paid yet by the customers. I have two questions about this.
1) can they hold back our commission until the customer pays the invoice?
2) can they upcharge a material fee or material percentage to the plumber?
I'm ok with being paid a percentage of the job profit, but i don't think the material fee is fair. Is all this legal?
1 Answer from Attorneys
Unless the arrangement violates the minimum wage laws, a commission arrangement like the one you describe is lawful. So, if your entire wage is commission based, and no customer pays during the pay period (meaning you earn no commission), then your employer would still need to pay you minimum wage for that period.
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