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commission while on Short Term Disability
Benefits & Compensation
commission while on Short Term Disability
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In CA When a commissioned sales employee goes out on a disability leave (for example, due to the birth of a child), we pay commission for recognized revenue through their last day of work, and hold p
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Forums  »  Topic Forums  »  Benefits & Compensation  »  commission while on Short Term Disability

commission while on Short Term Disability

posted at 11/20/2008 6:03 AM EST
Posts: 31
First: 8/4/2000
Last: 7/8/2011
In CA
When a commissioned sales employee goes out on a disability leave (for example, due to the birth of a child), we pay commission for recognized revenue through their last day of work, and hold payment of future commissions until the person returns. When they return, we pay them for revenue recognized while on leave for which they booked before they went on the leave. If for any reason the person did not return to work, they would not be paid commissions for the revenue recognized while they were inactive.

Does anyone have any experience in this area that would recommend something different?

Tnx.
Bb
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commission while on Short Term Disability

posted at 11/21/2008 2:04 PM EST
Posts: 108
First: 2/1/2007
Last: 9/9/2010
Your plan does not sound legal under CA law unless I am missing something.

Commissions are earned wages and cannot be forfeited because someone has terminated their employment. As wages, commissions must be paid under a pay schedule that is valid under CA law, so I don't think withholding their wages until they returned from leave would be legal either.

I would encourage you to visit the CA Dept. of Labor Standards and Enforcement's Opinion Letter page. http://www.dir.ca.gov/dlse/OpinionLetters-bySubject.htm. They have a couple of opinion letters on commissions that could give you some guidance.
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commission while on Short Term Disability

posted at 11/22/2008 8:06 AM EST
Posts: 3
First: 11/22/2008
Last: 7/13/2009
My employer treat commissions the same way. Commissions are not paid while an employee is inactive.
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Forums » Topic Forums » Benefits & Compensation » commission while on Short Term Disability

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