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Patrick, Esq.
Patrick, Esq., Lawyer
Category: California Employment Law
Satisfied Customers: 12619
Experience:  Significant experience in all areas of employment law.
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Hi, My company paid another manager on a sale, commission

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My company paid another manager on a sale, commission were paid to her in the normal fashion, then the account was transferred to me. The customer was unsatisfied with the services and asked for and received their money back from my company. Because I was managing the account at the time, the commission that was paid to another manager was debited from my commissions. I was never paid on it, but I had to pay the company back. I would like to show them they are wrong and operating illegally but I can't find the section that spells it out. Can you advise me.

My company is based in Mass, I live and work in CA
Hello and thank you for entrusting me to answer your question. I am sorry to hear about this incredibly unfair deduction.

As is often the case, the answer to your question lies in multiple sections of the CA Labor Code which must be read together and in context.

Specifically, Labor Code 221 states:

"It shall be unlawful for any employer to collect or receive from an employee any part of wages theretofore paid by said employer to said employee."

Labor Code 200 defines "wages" as follows:

"'Wages' includes all amounts for labor performed by employees of every description, whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method of calculation."

Based on these two sections, an individual in your circumstance can argue that deductions from your commissions ("wages") for the refund of a sale from which you did not profit constitutes an unlawful deduction of wages pursuant to Labor Code 221.

Please do not hesitate to let me know if you have any questions or concerns regarding the above and I will be more than happy to assist you further.

If you do not require any further assistance, please be so kind as to provide a positive rating of my service so that I may receive credit for assisting you. Very best wishes to you and thank you so much for coming to Just Answer.
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