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If I am a 100% commission sales person in the remodeling world

Customer Question

If I am a 100% commission sales person in the remodeling world of Kitchens and Baths, can my employer charge me back with a "negative" commission if the job ended up at a loss due to no fault of my own?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard replied 1 year ago.
Hi! My name is XXXXX XXXXX I look forward to helping you!

You absolutely have the legal high ground on this. You are entitled to your commission period. Whether or not the job end up profitable or not is not your issue. Your commission is based on the job that you do. He has no legal right to back-charge you because the job did not turn out profitable for him. I'm sure is comment that you share in the risks and rewards is not true; rather, it's only the losses that he wants you to share in. If he truly thinks this is true, you might want to ask him to show you the profit/loss on all projects and ask him to show you how you shared in the particularly profitable projects. :) If you can't resolve this, let him know you will have no choice but to file suit to collect what your rightfully earned. Filing the suit will get you the collection options and leverage you need to collect the debt owed you. That's because once the suit is filed and a judgment awarded, you become a judgment creditor, and if he doesn’t then pay the judgment, you can have the sheriff serve a summons for a debtor examination. That forces him to meet you in court again and answer questions under oath about the company assets. After that information is obtained, you have the power to attach bank accounts, have the sheriff seize other personal property, and/or place liens on any property the company owns to satisfy the judgment.



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Customer: replied 1 year ago.


Thanks so much. Big relief. One other question, my offer of employment letter states the "calculationns for that salary(100% commission) will be based on the following: 25% of Gross Profit "


 


So if there is no profit I will not make a commission which I understand (either of fault or no-fault of myself) Just to be sure I understand, if there is no profit but rather a loss he can't charge me 25% of the loss.

Expert:  Richard replied 1 year ago.
You're welcome...it's my pleasure. That is correct. If there is no specific provision relating to a loss, the company cannot later impose one by implication. Courts construe documents strictly against the drafting party and I'm pretty sure it's the company that drafted this agreement for you to sign.
Richard, Attorney
Category: Business Law
Satisfied Customers: 46879
Experience: 32 years of experience practicing law and a businessman.
Richard and 4 other Business Law Specialists are ready to help you
Customer: replied 1 year ago.


Thanks again and have a great day

Expert:  Richard replied 1 year ago.
You're very welcome! Have a great weekend!
Expert:  Richard replied 1 year ago.
Thank you so much for the positive rating! I truly appreciate you taking the time to do that!

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