Is it legal for a corporation to run deals and not make up the difference for the employees?

I am a hairdresser and I work for a corporation of salons. I make commision at the salon. 43% of my total services. They constantly run promotions for free services or discounted services. So I am literally working for free because we don’t get hourly either. Is it legal for a company to run these promotions and not make up the difference for the stylists?

Asked on July 7, 2012 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

It is legal for companies to offer specials and deals which reduce commissioned employee's earnings:

1) The business has the right to set its pricing, to offer discounts and incentives, etc. It also has the right to determine employee wages, salary, or commission, and could, for example, entirely exclude some customers or some services from being commissioned.

2) Commissioned employees regularly are required to do work--whether administrative, meetings, or marketing, for example--which benefits the company but does not result in commissions for the employee, and this is legal.

 


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