Can my employer deduct a discount to a customer from my pay?

Asked about 2 years ago - Los Angeles, CA

I receive minimum wage plus commission. My employer offers discounts to customers via Groupon,, and various other discount websites. My employer pays me commission after discount instead of commission before discount. An example would be a recent discount that was offered through Customer pays $99 for a $200 service voucher. I perform a $200 service to the customer but only receive commission on the $99. Is this legal?

Attorney answers (2)

  1. Neil Pedersen

    Contributor Level 20


    Lawyers agree

    Answered . As long as you get minimum wage for all hours worked, the employer can create any kind of bonus structure is wishes to create. There is nothing unlawful about a bonus plan that pays based on the money actually realized by the employer as opposed to a pre-discount or pre-coupon amount.

    Good luck to you.

    This answer should not be construed to create any attorney-client relationship. Such a relationship can be formed... more
  2. James Carl Eschen III

    Contributor Level 16


    Lawyers agree

    Answered . As Mr. Pederson states, so long as you are receiving minimum wage, your commission arrangement is part of your contract with your employer. If he made known to you before you started work that he calculated your commission based on the discounted value of your sales, the arrangement is legal.

Related Topics

Employee wages

Employee wages are set by the employer but must meet the federal or state minimum wage. Employers must withhold, report, and pay employment taxes.

Employee wages and payroll deductions

Payroll deductions are optional deductions from a paycheck for expenses facilitated by the employer, like health insurance, transit passes, or gym memberships.

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