I recently quit my job at a car lot where I was a sales man. My employer is refusing to pay me and states he doesn't have to because I was a commissioned employee and states I didn't meet my draw for the month prior and that I owe him. There was never any document signed that stated any money would be paid back if I didn't make my draw. I need to know what I am able to do legal wise. I live in Mo and contacted the Missouri labor department, I have sent my 7 day notice to him as stated by Mo. He is refusing and just making threats that I am going to have to take him to court and there is nothing I can do about it cause he doesn't have to pay... I am confused on my rights as a commissioned sales person... Any help would be great! Thanks

If you are paid straight commission, even if you are given a draw against commission, its implied that you have to first meet the draw before you get additional monies. That's what a draw means.

If you go to court, you will most likely lose and be ordered to pay back the amount of the draw that you didn't make up. All he has to prove is that it was a draw, not a salary.

For the current month that I was there which was June I do have my commission sheet that states he owes me for June.. So even though I have a commission sheet for June I still have nothing I can prove against him?

Thanks for your help

Did you recevie a draw for June? Did you receive prior draws that exceeded the amount of commission?

Ok, this is how a draw works, if they pay you some money each week, even if you don't have any sales, that is called a draw, it is like a loan, and when you sell things, your commission is applied to the draw.
If you make more money in commission, then the draw account either adds money to it. Or you make a bigger check.

So if in one month they paid you 2000, but your commissions you made were only 1500, then no you don't get any more money, in fact, if they had you sign papers you would have to pay them back the balance they paid you.

This is very very common in car sales, and in insurance sales, I know many life insurance people that end up oweing 1000's to their company when they quit.

From the first day you stated, what was the total amount of money they paid you. (* your draw) and what was the total of your commissions.

If your total commissions from the first day, is more than your draws, they owe you money, if your total draw was more than your commission then you will owe them money.

Hello collum:

I must disagree with my learned colleagues.

If there ever IS a commission, the draw would be deducted from it. But if there is NEVER any commissions, then the draw becomes salary, as I'm sure withholding taxes were taken out of your "draw" check. Additionally, many companies lure commissioned sales reps promising a “draw” for x number of months.

For those reasons, I suggest they owe you your final "draw/salary".

Sue 'em.

excon

You have to be paid at least the equivalent of minimum wage, which is $5.15/hour, for the number of hours you worked. Any hours above and beyond 40 in any one week get paid at time and a half, which for a figure of $5.15, would amount to $7.73/hour. So if your commissions and/or draw don't amount to at least that, then he has to kick in the difference. You did the right thing by contacting the Labor Department. I'd keep following up with them until you get a response. If that proves ineffective, then I'd take him to court.

I did not sign any papers stating I would have to pay anything back. I had taxes taken out of my draw checks and my commissions. I had the office manager fax me a copy of my June commissions stating that I was over my draw and she even wrote on the paper the amount owed to me past my draw... He is still not paying me and not responding by phone, he will only respond by text message. This says a great deal for his maturity. This is a person that I worked for, for over 5 yrs. Too long I know!

Hello again, collum:

You don't have to talk to them. I certainly wouldn't at this point. Sue them in small claims court. It's cheap, quick and easy. I'll bet a summons will get their attention.

excon

I do believe that people can work solely on commission which would exempt them from minimum wage laws.

If you can prove, that your commissions exceeded your draw, then do take them to small claims court for the amount owed.