In Iowa, am I required to pay back a draw against commission if I leave the employer before paying back the draw?

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In Iowa, am I required to pay back a draw against commission if I leave the employer before paying back the draw?

I was hired in November 2017. The language in my offer letter was
very brief and included that I would get a draw for 3 months
against commission but nothing else regarding terms. I resigned
March 2018 and now my former employer sent me an invoice to
collect the draw debt. I was in a salary commission position.

Asked on April 10, 2018 under Employment Labor Law, Iowa

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Yes, you have to repay it. A draw is an advance or a loan: it is being in essence loaned money you have not earned yet, to be repaid out of earnings. By its very nature or definition, a draw is a loan or advance, not a gift, and must be repaid.


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