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

UPDATED: Feb 21, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Feb 21, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 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.

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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption