Legal Question in Employment Law in Pennsylvania

commission chargeback

We hire sales people under a W2, but request a W9 to state they are working as independant contractors. A sale may result in 200.00 commission. They sell out home improvement products (windows doors). If they mis-measure an item, they must pay the full amount (could be 1000 on the same sale) of the materials ordered that cannot be used, but they are not allowed to keep the material. Is any of this legal? The fact that they may be liable for $1000 in material on a job they only made $200 commission on? Is it legal that they cannot have that same material?

Happens in Ohio PA and Michigan

Please advise.

Thanks


Asked on 9/18/08, 7:39 am

1 Answer from Attorneys
Howard Mishler Howard V. Mishler Co. LPA

Re: commission chargeback

It is a unjust penalty. You are indemnifying the company for loss. It is only legal if all consent to it as a condition of employment.

Read more
Answered on 9/19/08, 11:40 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in Pennsylvania