Chargebacks and Commissions

I have a business where I employ technicians to
repair iPhones, iPads and other electronic
equipment. I pay my employees hourly plus
commission for each repair. Due to the sensitive
nature of the parts we use, a heavy handed or
careless tech can damage these. We teach and train
how not to damage parts and we do not put anyone
in a position where they cannot avoid damage.

My question is, in South Carolina, can I deduct the
actual cost of damaged assets and parts due to
carelessness from the commissions I pay my
employees?

Asked on April 29, 2016 under Employment Labor Law, South Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You can only deduct damage from commissions if the employees agree to let you damage them. This agreement or consent may be in advance: you can have employees sign an agreement that by working there, they consent to allow their employer deduct damages from their commissions (not from base salary). If they refuse to sign, you can terminate them (or move them to other positions): i.e. you can make agreeing to deductions a term or condition of this employment.


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