Wan an earned sales commission be taken back and what deductions can be made from my paycheck?

UPDATED: Sep 30, 2022

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Wan an earned sales commission be taken back and what deductions can be made from my paycheck?

I sold a sofa and got a sales commission of the sofa I sold him. A month later the customer returned the sofa. My employer said I’m obligated to pay back the commission I previously earned and that they will take it out of my next month’s payday check. Can they do that?

Asked on April 15, 2016 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, you have to repay a commission if the item sold were returned and the customer given his/her money back: you are commissioned on the money your employer makes on sales, and in this case, they did not make anything: ergo, no commission. They can charge this amount back against your commissions, and take it out of a future commission check.

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