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FMLA and Commission Pay
Benefits & Compensation
FMLA and Commission Pay
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We have an employee who is returning from FMLA. Our comission structure is such that if the employee fails to make goals in the preceeding quarter they lose 2% of comission. Is this allowed to be done
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FMLA and Commission Pay

posted at 9/3/2009 4:18 AM EDT
Posts: 5
First: 8/7/2009
Last: 9/3/2009
We have an employee who is returning from FMLA. Our comission structure is such that if the employee fails to make goals in the preceeding quarter they lose 2% of comission. Is this allowed to be done to this employee since they obviously had no sales while on leave. Our policy does not address this issue.
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FMLA and Commission Pay

posted at 9/3/2009 4:59 AM EDT
Posts: 1047
First: 4/11/2002
Last: 9/14/2011
You can go this route so long as it doesn't drop the employee below minimum wage. But, do you really want to?
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FMLA and Commission Pay

posted at 9/3/2009 5:00 AM EDT
Posts: 1771
First: 10/24/2002
Last: 9/14/2011
If the 2% decrease is supposed to be punitive, then no, I don't think you can do this, as you're not supposed to punish people for going on FMLA leave.
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FMLA and Commission Pay

posted at 9/3/2009 5:03 AM EDT
Posts: 5
First: 8/7/2009
Last: 9/3/2009
We are not dropping the person below minimum wage (they will still be earning a salary) and it is not punative. The comission rate is based on the last two quarters and since this employee did not make their numbers based on the leave...they will be dropped per the guidelines.

I agree it is not the "popular choice" but my problem is, is it legal?
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FMLA and Commission Pay

posted at 9/3/2009 6:11 AM EDT
Posts: 1047
First: 4/11/2002
Last: 9/14/2011
Yes it's legal. FMLA protects a person's job, not the formula for commission pay.
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Forums » Topic Forums » Benefits & Compensation » FMLA and Commission Pay

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