Can a company withhold pay?

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Can a company withhold pay?

Minnesota based company has recently told us if we do not punch in and out on two separate websites we will not be paid for our work during that period. We were also told that if they do not feel like we are performing (i.e. meeting our metric goals that they will withhold our commissions and only give us our hourly base pay). We were all hired with a base pay plus commission employment contract.

Asked on August 29, 2019 under Employment Labor Law, Minnesota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

1) The employer is entitled to set the system or procedure for punching in and out, and can require employees to provide this information so their wages can be calculated before paying them.
2) Commissions are treated differently than base wages: an employer can, as long as employees are told in advance (as you are) set parameters for commissions and withhold them if goals are targets are being met. Commissions, like bonuses, are not earned only by working (as base pay 8 is) but rather by accomplishing specific goals or metrics the employer sets.


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