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Commission Pay-back
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Commission Pay-back
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Today the President of our IT Consulting Company asked me to review his new incentive policy for Sales and Recruiting Staff. The staff is paid a certain commission on a consultant's work after we coll
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Commission Pay-back
posted at 7/15/1999 3:11 AM EDT
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Posts: 8
First: 6/9/1999 Last: 9/14/1999 |
Today the President of our IT Consulting Company asked me to review his new incentive policy for Sales and Recruiting Staff. The staff is paid a certain commission on a consultant's work after we collect payment from our clients. Now, the President wants to have a policy that says if the consultant leaves before the end of his assignment, the sales and recruiting staff will pay back 50% of whatever commission they've previously been paid on that consultant. And that amount will be automatically deducted from future commissions.
IMO this is sleazy, but is this legal? |
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Commission Pay-back
posted at 7/15/1999 5:34 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
Looks questionable to me,but the answer will depend on your state law. For example, your state law regarding payment of wages could have a provision for commission salespersons, construing commissions as wages, and prohibiting employer deductions of these wages under most circumstances. Even leaving aside questions of whether this is a smart or fair policy, you ought to have it reviewed by legal counsel for compliance with your state labor laws before implementation. |
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