Perspective
Aug. 17, 2012
Deleon v. Verizon Wireless provides guidance on commission advances
A Court of Appeal reaffirmed that employers may recover chargebacks against commission advances where the employee has not earned the commission under the terms a compensation agreement. By Tal Korn of Freeman, Freeman & Smiley LLP
May an employer advance commissions to its employees and later recover chargebacks against future advances for items such as customer refunds or service contract cancellation? While California law makes it unlawful for an employer to collect a previously paid wage from an employee, chargebacks against commission advances are permitted if the employer takes careful action to define when such advances become earned wages.
Labor Code Section 20...
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