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Marsha411JD, Lawyer
Category: Employment Law
Satisfied Customers: 20363
Experience:  Licensed Attorney with 29 yrs. exp in Employment Law
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In Utah ... as an Independent Sales Representative, I am paid

Customer Question

In Utah ... as an Independent Sales Representative, I am paid a recoverable draw. in the agreement, it states specifically that all "advance payments" are recoverable, and then uses an example of how the advances are recovered: essentially the payments are recovered when sales occur, and the amount of the sales are credited against the advance. There is nothing in the agreement that states how or if the outstanding advance payments are a "loan" and how they would be repaid outside of future commissions earned. If I terminate my employment, would I be liable for repayment of any outstanding advance payments?
Submitted: 2 years ago.
Category: Employment Law
Expert:  Marsha411JD replied 2 years ago.
Thank you for the information and your question. Yes, the payments, by their nature are "advance" payments which contemplate offset (recovery) when earnings are received and the offset can take place. They are not earnings or earned commissions, so under contract law, the "advance" is repayable if no earnings exist to offset against the advance. You can call it a loan, or just an advance, as it is termed. But, not repaying it would be considered unjust enrichment under contract law. If not "earned" it is not due you. This, of course, assumes that would not be any downstream sales income after you quit to offset/credit against the advance.
Please let me know if you need any clarification.
Expert:  Marsha411JD replied 2 years ago.
Hello again,
I wanted to touch base with you and make sure that you did not have any follow up questions for me from the answer I provided to you on the 12th. For some unknown reason, the Experts are not always getting replies or ratings (in the pop up box, which is how we get credit (paid) for our work) that the customer thinks have gone through. In your case I received neither. If you are having technical difficulties with reading, replying or rating, please let me know so that I can inform the Site administrator.
In any event, it was a pleasure assisting you and I would be glad to attempt to assist you further on this issue, or a new legal issue, if needed. You can bookmark my page at:
Thank you.