Legal Question in Employment Law in Massachusetts
withheld commissions
I gave notice that I was leaving a rep group after 6 years. My rep principle immediately began withholding 1/2 of all commissions due to me. Somewhere between 6 to 8 months later the rep principle will send me the balance of the money she has withheld minus a $300 administrative fee. Is this legal. My staus with her was as an independent sales rep.
2 Answers from Attorneys
Re: withheld commissions
It depends:
1. You have an agreement?
2. Charging an administrative fee to collect on your income, barring an agreement, is wrong.
3. Get your $, and file a small claims act for the balance.
Re: withheld commissions
Payment of commissions is generally governed by a written policy or agreement between the parties. If in writing it should spell out what happens on termination of employment. Also should spell out when commissions are due. Does agreement provide that commissions are lost if customer cancel's order, etc. In any event, I don't believe an administrative fee is enforceable. You could call the Attorney General's Office of Wage and Hour administration and ask them. Ifg they say it's illegal, notify your employer.
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