Reducing or Taking Away Sales Commissions - "It is legal in California?" Top Labor Attorney Explains

Описание: Employment law attorney Neil Shouse of Shouse California Law Group explains whether employers can legally reduce or deduct from sales commissions in California.

More info at https://www.shouselaw.com/ca/blog/can... or call (877) SUE-MY-BOSS for a free consultation.

Can Your Boss Take Your Commission? California Commission Laws Explained

For sales professionals in California, commissions are often the lifeblood of their income. A common source of workplace disputes arises when an employer attempts to withhold or reduce these payments. Under California law, commissions are classified as wages. The general rule is that once a commission has been earned, it cannot be forfeited. However, the specific terms of a written employment contract determine exactly when a commission is considered earned. Employers are legally permitted to include provisions that void a commission if, for example, a customer returns a product or if an item is sold at a specific discount.

Despite these allowable contract exceptions, California law imposes strict limits on what employers can deduct. It is illegal for a company to dock your commissions to cover general business expenses, cash shortages, or equipment breakage caused by simple negligence. Even if an employee signs a contract agreeing to these types of deductions, such clauses are often unenforceable in court. Furthermore, while employers have the right to alter commission rates for future sales, they are strictly prohibited from retroactively lowering rates on work that has already been completed.

If you have been fired, your employer must pay out all earned commissions, though payment may be delayed until the sales calculation can be finalized. If your employer has unlawfully withheld your earnings, you may be entitled to recover the unpaid wages plus penalties. Watch this video to learn about your rights and how to protect your income.

If you or a loved one has had your commission pay unfairly withheld by an employer, we invite you to contact us at Shouse Law Group. We can provide a free consultation in office or by phone. We have local offices in Los Angeles, the San Fernando Valley, Pasadena, Long Beach, Orange County, Ventura, San Bernardino, Rancho Cucamonga, Riverside, San Diego, Sacramento, Oakland, San Francisco, San Jose and throughout California.