February 18, 2010
Is A Draw Against Commission Legally Owed To An Employer If The Employee Does Not Achieve Sales Goals?
I’m considering an offer for a draw against commission sales job. I’ve never worked under such an agreement. If I don’t achieve the sales goals that are set for me would I be legally required to pay back to the employer all the money that had been advanced to me as a draw? I imagine that federal Wage & Hour law applies in such circumstances, but I live in Maryland if that makes any difference.
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Comments on Is A Draw Against Commission Legally Owed To An Employer If The Employee Does Not Achieve Sales Goals?
Generally speaking, they would still have to pay you minimum wage. Which isn’t very much.
Beyond that, it’s really dependent on their own employment contract. I highly doubt they could or would come after you for anything lost. It could be that it’s a guaranteed draw, where you make say $2000 per month no matter what, and if your commissions exceed $2000, that’s what you get instead.
This is a perfectly fair question to ask your prospective employer. State it in a way that you are fully confident you’ll never really need to find out the hard way, but… what if?