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Patrick, Esq.
Patrick, Esq., Lawyer
Category: California Employment Law
Satisfied Customers: 12796
Experience:  Significant experience in all areas of employment law.
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I have a question: We have a marketplace where professional

Customer Question

I have a question:
We have a marketplace where professional chefs (who are 1099s) offer cooking classes to customers. For every transaction going through our site, we take a commission (between 15%).
Sometimes, we might rent on behalf of the chefs a venue and would then deduct the venue fee from their earnings. We had a glitch in our system that in some cases we didn't deduct the venue fee from their earnings. The amount sums up to several $1000 dollars that our chefs owe us and we would now like to ask them for the money back.
- Can we just send them the records proving that we never deducted the fee and ask them for the money back or do we have to deduct the amount from their future earnings?
- Do you have any concerns from a legal perspective on this?
Thank you so much in advance for your answer.
Submitted: 1 year ago.
Category: California Employment Law
Expert:  Patrick, Esq. replied 1 year ago.

Hello and thank you for entrusting me to assist you. My name is ***** ***** I will do everything I can to answer your question.

Assuming your contract clearly spells out that the venues fees were to be deducted from the chef's paychecks, there would certainly not be any issue with simply asking for the money back, as the overpaid sum was never earned and still belongs to you. Deducting from future paychecks would not violate any law, either. But again, if you can't prove that you were entitled to make the deductions in the first place then you risk being sued for breach of contract for making an unauthorized deduction from the chefs' pay.

I hope that you find this information helpful. 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 moving forward.

Expert:  Patrick, Esq. replied 1 year ago.

Are you still with me?

Expert:  Patrick, Esq. replied 1 year ago.

Can you please let me know if you are receiving my messages?