Legal Question in Employment Law in Tennessee

100% Commission - Fraudulant Pay Chargeback

The company that I sell for, at one time was charged by the manufacturer a ''chargeback'' fee if the original customer that the product was built for did not take delivery of it, and the item was sold to someone else.The commission was therefore adjusted down, however, even after the manufacturer quit charging my company back,they continued telling us that it was still being charged.After I sold several of the items at the price as instructed, my company charged me back on my commission.Is this legal?What can I do?


Asked on 1/21/02, 8:43 pm

1 Answer from Attorneys

Alan Crone Crone & McEvoy, PLC

Re: 100% Commission - Fraudulant Pay Chargeback

If your employer continued to take "chargebacks" out of your commissions after the manufactuer was no longer charging them to your employer, then you may have a claim not only for the return of the money wrongfully taken from you, but also possibly a claim for fraud. Your employer also owes you a fiduciary duty with regard to the money they are holding for you. To give you a complete opinion on this I would need to ask you more questions. I have handled a number of cases such as this before and each one is different.

If I can be of any further assistance to you, please do not hesitate to contact me, [email protected] or 901.527.5522

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Answered on 1/23/02, 7:06 pm


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