Legal Question in Employment Law in Utah

Recently our company changed it's employee pay policy. We sell medical equipment and the new health care law just turned our once purchased equipment into capped rentals. Prior to this time we were paid commission on sales made and that commission was paid 3 months following the sale. Now as long as the equipment is kept for those first 3 months, we make full commission. However, the company is using the employee paychecks as financing by now paying us 1/3 of the commission at 3 months, 1/3 at 4 months, and 1/3 at 5 months. As you can guess the first month this type of pay is implemented it will be a very low income month. The other worry is that once employment is terminated, how can we guarantee that we will be paid for the next 6 months? Is this all legal?


Asked on 1/31/11, 6:26 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

The only way there is a guarantee is if employer escrows the full commission in a special account. It is not illegal, but it appears the sales people are taking a risk that they may not get paid.

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Answered on 1/31/11, 7:10 pm


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