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View Full Version : Can my employer really make me pay back minimum wages as a draw?


SALESPERSON
Nov 10, 2008, 06:49 PM
I am an inside sales rep and signed a simple contract stating I would get a three month draw of 2000 per month. I woul have to meet a certain level of production to get the 2000 or else I would receive a $1000.00 draw. I have been there for 11 weeks and I have received to paychecks based solely on minimum wage in Minnesota. I have made a sale that will gross me about $1300.00 in commissions. The sale is going to be made in November and I will be paid for it in December. My November hours worked will be somewhere around 120 hours. It is my understanding that since he paid me the first two checks under a "wage" rate or "salary" rate he cannot reduce my commissions. Is this correct? Will he be able to take back the total of $1615 that he has already paid me in minimum wage (thus making my wages effectively $0.00 for the first two months) or does he have to pay me the whole commission? Very confused?

Fr_Chuck
Nov 10, 2008, 07:11 PM
Draw is not min wage, it may be equal, but a draw is a loan, so each week you took a draw you were getting a loan from the company.

You are on commission, so basically what they could do is only pay you the commission you get, so for the first month or two, if there was no sales at all then you should get no pay what so ever.

But instead they give you a loan based on some agreed to level.

And when you start gettig sales those commissions have to go to pay off those loans first.

And it can get even worst, if you did not make that sale, and quit, you would have to pay them back all of that money you were paid.

This is how sales commission jobs work.