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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Employment Law
Satisfied Customers: 41220
Experience:  I provide employment and discrimination law advice in my own practice.
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HI. Im a commissioned sales person with a draw. Our draw

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I'm a commissioned sales person with a draw. Our draw is based on an hourly rate. The company i work for requires us to attend mandatory meetings with out compensation or reimbursement, sometimes driving over an hour each way. My location is in NJ the meetings are in PA OR DE is this legal?

Thank you for your question. Please permit me to assist you with your concerns. I happen to be a Pennsylvania and a New Jersey licensed professional and am familiar with the laws in those states.

To answer directly, provided you are given a 'draw', this is a legal practice. If you were straight commission and received no benefit whatsoever, then the answer would be quite different--then the employer would have to pay you for your time that you spent directly working for them and unable to pursue your commissions. But since there is a draw in place, that draw acts as a de facto salary that permits the employer to pay that out as part of meetings and additional services that you could be asked to perform.

Hope that helps.

Customer: replied 3 years ago.

the draw is not in play when we are going to the meetings. the draw is only given for the hours we are on the sales floor. 40 hr week draw is $300 if were only able to reach 250 in commission then we owe the company $50 out of our next check. If they include the hours of the meeting then draw is 516 because of overtime. if were only able to reach 400 in commission then we owe the company $116. It would cost us more money.

Thank you for your follow-up, CK.

I see and I understand. That is a bit different. If the draw is directly and contractually (meaning in writing) linked to the time you spend on the sales floor, then anything else that you perform for the company, be it travel or outside meetings is additional wages and expenses. That ends up being a separate payment, but it is no longer a draw. That is a 'wage', since it is work being performed outside your established rules and contractual terms for the employer. This is something an employer has to simply pay you for, it cannot be included in the draw. If the employer fails to modify such terms, consider contacting the state department of labor and filing a grievance against them for violating labor laws.

Good luck.

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