Legal Question in Employment Law in Tennessee

commission forfieture

Is this forfieture legal?

Currently an additional 12% of Commission is being withheld to cover charge-backs for a period of 6 months. It is

anticipated the commission held back should be approximately equal to routine amount of commission charge-backs WCI

incurs after an employee leaves the company. This rate is subject to change from time to time. All of this commission withheld from an employee during the prior 6 months will be forfeited at the end of employment to offset expected chargeback expense.


Asked on 8/29/07, 12:46 pm

1 Answer from Attorneys
Alan Crone Crone & McEvoy, PLC

Re: commission forfieture

It may not be. It depends on how they set it up. Most companies do not do this correctly. You should see an attorney about this ASAP.

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Answered on 8/29/07, 4:26 pm


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