If I’m working on commission due I have to absorb the loss for discounted services?

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If I’m working on commission due I have to absorb the loss for discounted services?

I work in a commission salon as a nail technician. I get 55% of the total service. When the salon offers discounts should I take the hit and be paid 55% of the discount price or should the owner absorb that and pay me 55% on the full price of the service?

Asked on February 21, 2012 under Employment Labor Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Most commonly, commissions are calculated based on the actual sale price, so a commissioned employee or independent contractor will have his or her compensation reduced when there is a discount--in your terms, you "take the hit."

It would be legal for the business to commission you on the full, non-discounted price; however, since that is not the norm and not how commissions are typically calculated, it would take a specific agreement to that effect to require it.

Since contracts are enforceable as per their plain terms, refer to the agreement between you and the salon as to how you are commissioned--the terms of the agreement will control. If the agreement, whether writtenn or oral, is silent on this subject, then the normal way commissions are calculated (off actual price charged) would apply.


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