California Employment Law

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California Employment Law

I am a W2 employee in New York of a California-based company.

Customer Question
My colleague and I get...
I am a W2 employee in New York of a California-based company. My colleague and I get a draw salary of $8,000 per month. Employer stopped paying my partner's draw then asked him to pay back the difference between the draw he received versus the commission he generated. Does he need to pay the employer back the difference? I heard the employer can not ask an employee to pay back a draw salary in NY...
Submitted: 4 years ago.Category: California Employment Law
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Answered in 13 minutes by:
6/13/2013
California Employment Lawyer: Joseph, Lawyer replied 4 years ago
Joseph
Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5,299
Experience: Extensive experience representing employees and management
Verified
Hello and welcome to JustAnswer.

I'm very sorry to hear about your situation and hope I can help.

Do you know if your friend (or you) signed a promissory note or any other agreement that states that you have to pay back the portion of the unearned draw?
Ask Your Own California Employment Law Question
Customer reply replied 4 years ago

We signed an employment agreement that talks about it in vague terms. I can probably get you a copy.

California Employment Lawyer: Joseph, Lawyer replied 4 years ago
Hello Alan,

It would be very helpful for me in answering your question if you do so. Thanks!
Ask Your Own California Employment Law Question
Customer reply replied 4 years ago

How can I send through a 7 page pdf document?

California Employment Lawyer: Joseph, Lawyer replied 4 years ago
Hello Alan,

You can try attaching it through the paperclip icon. If you aren't able to attach it, if you can try to divide i into one or two page documents that may enable it to go through.

The alternative would be to cut and paste the document if you can. You can focus on the clause(s) related to the draw.

Thanks!
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Customer reply replied 4 years ago

I can't attach the file or cut and paste from a pdf. Very frustrating. can you suggest any alternative solution?


 

California Employment Lawyer: Joseph, Lawyer replied 4 years ago
Other than contacting customer service, I cannot really think of one.

I know there are programs (like nitro and something through adobe) that can make pdf documents into word docs, but I think they all ocst something.

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California Employment Lawyer: Joseph, Lawyer replied 4 years ago
Hello Alan,

I should be able to provide you with the requested information without you attaching the agreement.

You are correct. An employer cannot require that an employee repay any portion of an unearned draw. A draw can only be reconciled against future commissions and employees who leave this type of employment are not required to repay the draw received.

Please see this site for additional information:

http://www.labor.ny.gov/legal/counsel/pdf/payment-of-commissions-frequently-asked-questions.pdf

I hope the above information is helpful. Please let me know if you have any additional questions or need any additional information.

Thanks and best of luck!
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Customer reply replied 4 years ago

I forwarded the full contract to [email protected] and they will forward to you.

California Employment Lawyer: Joseph, Lawyer replied 4 years ago
Hello Alan,

My analysis above applies as long as the money that was advanced is considered a draw against commissions, which absent any other indicators, it definitely should be.

Did the employer term it as such?

If not, there could be an issue with the employer claiming that the draw was an 'unsecured loan.' If they called it an unsecured loan, and a promissory note was written for it, then the employer would be able to require repayment of the 'loan' through section 4(c) of the agreement.
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California Employment Lawyer: Joseph, Lawyer replied 4 years ago

Hello Alan,

 

Please remember to rate my answer positively so I get credit for my work!

If you don't rate me positively the website recoups your entire deposit and I get nothing for assisting you. Since I need the money way more than they do, please rate my answer positively!

 

Again, if you need any follow up information or have any follow up questions, don't hesitate to ask!

Thanks again and best of luck!

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California Employment Lawyer: Joseph, Lawyer replied 4 years ago
Please let me know if there are any follow up questions I can answer or additional information I can provide to get you to positively rate my answer.

Thanks again and best of luck!
Ask Your Own California Employment Law Question
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Joseph
Joseph
Joseph, Lawyer
Category: California Employment Law
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