Can a company charge back a draw salary if the sales opportunities are not available?

UPDATED: Dec 23, 2011

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Can a company charge back a draw salary if the sales opportunities are not available?

The company I work for pays a draw every pay period, the sales I make repays the draw. I started working for the company 10 months ago and was out in the field 4 months later after training. The understanding was that there would be enough sales opportunities to support the monthly draw. The company supplies leads that are generated through the call center. So far I have been able to pay back the draw but I will be back in the hole again by next month’s pay date.

Asked on December 23, 2011 under Employment Labor Law, Illinois


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Whether or not your company can contractually charge back a draw salary that you have received as an employee where you are on a commission paid basis depends upon what your contract states as well as any employee handbook provided you by your employer that you signed a receipt for.

As such, you need to carefully read the above documents in that their terms and conditions control the obligations that you owe your employer and vice versa in the absence of conflicting state law.

Assuming the agreement you have states you are obligated for a debit charge for advanced draws if you fail to make your quota that pays your draws, then it seems that the provision would be valid under existing law.


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