Legal Question in Employment Law in Florida
charge back on commissioned sales
I work for a large advertising company and get paid salary plus commission. My question is can a company legally charge back commissions to the sales force due to clients not paying their bills or companys going out of business. I did some research via the web and found that this is illegal in the state of California, but what about in Florida? All advice is helpful.
2 Answers from Attorneys
Re: charge back on commissioned sales
It depends on your contract, but chargebacks are pretty common in Florida.
Re: charge back on commissioned sales
It depends on the terms of the contract you signed with the company, if in fact you do have a written contract. If not, then it may depend on the prior conduct, i.e., if they have charged you charge backs in the past to which you have not protested.
In the absence of prior conduct or a specific written agreement allowing for charge backs, however, Florida law provides commissions are earned when the the sale is finalized, not contingent upon if a buyer pays.
If you would like to discuss your options further, please contact me at your convenience.
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