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I am employed as a 100 Commission Sales Rep since Aug
2016. When i accepted employment there was not a car
package in place. Sales Reps use their own vehicles
and pay all expenses.
In Sept of this year the company announced we would be
receiving lettered company vehicles. I received my car
the first week of October. Vague details were given,
but the cars would be tied to a subjective and
arbitrary called ADL. A 1 deduction would be
applied if the is not reached. I did not fully
understand the at first, but realized it is a 1
reduction in commissions, from the 10 i was hired at
to 9. At my 2018 goals meeting today my manager was
happy to see an anticipated increase of 35 across the
board for my second full year of employment. Even with
that increase i would not come close to the they
want which would cost me over 8000.00 for the year.
Something is not right here. Right now i am scheduled
to start 2018 at a 9 commission rate. Can a company
issue a company car and make you pay for it, along
with gas and tolls?
Bob Peters

Asked on December 19, 2017 under Employment Labor Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, they can do this. It may be unfair; it may be frankly stupid; but it is legal. Employers can set the terms and conditions of employment, including the use of company-provided vehicles or resources AND the obligation to pay for them. A car is an extreme example, but other examples, such as being assigned a cell phone and having to pay the monthly charges, or a laptop but having to provide your own internet, abound. Jobs can be set up so that they are less profitable, even unprofitable, once costs are taken into account, for employees. In our "employment at will" system, the law assumes that if you don't the terms or conditions of work, the employee's recourse is to seek other employment.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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