Legal Question in Employment Law in New York

Commission Chargeback

I am a full commission salesman in wholesale business to business industrial supplies. This is not one time door to door sales, but developing long term repeat customers. I am paid my commission the month following the sale. The company I work for recently started a new practice of charging back the salesman for commissions on sales that are not paid in full within 60 days of the due date. If the sale is paid in full within 180 days of the due date the commission is given back to the employee. However, after the 180 day mark the commission is permantly forfeited whether or not it is eventually paid for. Is this a legal practice by my employer?


Asked on 9/30/03, 6:44 am

1 Answer from Attorneys
Stephen Loeb Law Office of Stephen R. Loeb

Re: Commission Chargeback

I think it really depends on what your employment contract says and whether the commission is construed as a portion of a salary or as a bonus. This is open to interpretation and would probably need to be litigated if you want to make an issue of it.

Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.

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Answered on 9/30/03, 8:09 am


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