At the beginning of this year, I thought my pay would be based on a new compensation structure. I thought my salary would be eliminated and replaced with a 100% commission structure. But my most recent Pay Statement hasn't changed, and my pay is still listed as Regular Pay. However, the Bonus Calculation spreadsheet provided by the company shows my regular monthly pay now listed as a draw. No one at my company has discussed how the new compensation structure affects my pay.
The compensation plan I signed shows a hypothetical draw of $50,000 as a demonstration of how the compensation plan works. It doesn't address my situation or how my draw works. My question is what are the ramifications for me if I continue taking a draw and a monthly bonus as I also have? Does my employer have some responsibility for letting me know how they determine my pay? I'm alright with continuing with my company, but my concern is if my employer can force me to repay the "draw" if I leave for another firm? Am I an idiot to stick around just because my supervisor's are too incompetent or reluctant to tell me to hit the road?
Your employer cannot recover the draw upon your termination unless you have reached an agreement with your employer that you will repay it. Your employer can, however, use the draw (and prior draws) to offset your commissions. This should all be spelled out in a written commission plan. You should contact your employer's HR department and request a copy of the commission plan that governs your situation.
DISCLAIMER: This is a message board. My comments on this message board are not legal advice, and nothing I write on this message board is intended to establish an attorney-client relationship with you. If you want/need legal advice, you should have an in-depth consultation with an attorney regarding your specific situation.
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