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Home > Careers & Employment > Law & Legal > Is it legal for a company to cut your commission by 10% for each day that you miss work?

Is it legal for a company to cut your commission by 10% for each day that you miss work?

Category: Law & Legal

PeacebewithinPeacebewithin


My husband recently found out that with the new compensation plan just rolled out at his work that for every day taken off whether a Vacation day, sick day, what ever.... That %10 for each day will be taken of his commission...... How can this be legal?

just me
just me

It is legal because companies do not have to pay commissions at all. It is considered bonus pay and therefore can be manipulated in any way the company desires as long as notice of the policy is given.

Jay
Jay

How can it not be legal?

A company is not required to give vacation or even sick days, with the exception of things like FMLA.

As such, as long as the policy is extended to all employees in similar positions, it's legal.

Steve
Steve

Employers can do whatever they want as long as they pay minimum wage. For commissioned work that can be on a draw system though.

As for the new 10% rule, even for vacation, what BS. That employer must like having miserable employees. Time to find a new job.

Just me, sounds like you may be unfamiliar with how many commissioned sales work. Many employees are 100% commission - that's certainly not a bonus.

jcordj
jcordj

Check within your state, the're all different.

hr4me
hr4me

It is legal, vacation pay and sick pay are benefits, not required by law. Commission pay is also a benefit. These benefits and payment of these benefits can be determined by the company. As long as they have given him advance notice that the payment structure for commissions is changing then they are complying with wage and labor laws.


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