Beth3

[lakergirl562]

What is the name of your state? CA
Hi Beth3... Gryndor suggested I copy my post to this forum and said you might be able to answer my question.

I'm trying to prove I recieved some money as a gift. The check I was given had nothing written in the memo part of the check (I have a copy). The person who wrote the check wrote "loan" in the memo part after the check was cashed. Is this legal? Thanks.
It is a substancial amount of money $40,000. My father gave it to me as a gift towards the purchase of my first home. I guess his wife got mad at him because he didn't tell her he was giving me this money. The problem is that I work for them. His wife is my broker and I'm a real estate agent. I'm an independent contractor who works on commission only. I also work exclusively for them. They have been withholding all my commission checks because now they're saying I owe this money to them. Can I sue for my pay?

P.S.- Had I known that this money was going to be a loan, I would have agreed to arrange some kind of monthly payment plan. Broker and Dad also know I can't survive without being paid and still they keep all my commission checks.

 

[SuzieWahoozie]

I'm Not Beth

I'm not Beth, but perhaps you'll allow me to give this issue a shot...if I'm wrong Beth (or someone else) will come by and tell me I'm wrong!

Putting aside whether or not this is really a gift or a loan...let's assume it IS a loan. I see this as a separate issue from your employment, regardless of whether or not the loan came from your father, who is also your employer.

The loan is a "personal" loan. Your father and his wife need to address repayment of the loan with you as they would if they had loaned money to someone who does not work for them, including suing you in civil court if you don't repay the debt.

Commissions are your wages, and should be used to repay the loan, but only once paid to you and willfully given up by you. In other words, your income goes to pay all your bills, no? But not until you actually receive it and decide that you want to pay the bill (or face the consequences for nonpayment).

You need to talk to your Dad privately (he seems to be the most reasonable one) and ask him if it is in fact a loan (and why didn't he say that in the first place), and whether or not he will release your wages to you if you make a repayment arrangement with him.

Even if the "loan" was made from a company account, companies cannot make deductions from EEs wages without their knowledge and consent, and can most certainly not retain the entire check amount - even federal tax iens leave something to live on!

If ALL of your commissions are not released to you, your recourse is to file a wage claim with the CA DOL. Fortunately, for you, CA is a VERY "employee-friendly" state!

Now...when Beth comes by, she'll correct me if I'm wrong!

Good luck to you!

 

[BelizeBreeze]

File a complaint with the state DOL AND the California Real Estate Commission.

 

[Beth3]

lakergirl, this gift/loan thing is not my area of expertise but yes, you can sue for your commissions owed. As an IC, you are not an employee so this is entirely a civil matter. The laws that apply to "wages" do not apply here. I would also contact your bank and see if you can obtain a copy of the check you deposited, which hopefully was electronically stored. You need verification that "loan" was added to the check after the fact.

I'd advise two things: (1) Talk to your father. Sueing a family member is a very big deal and could permanently damage your relationship with him. See if the two of you can resolve this before taking legal action. (2) Start looking for a new job immediately. There's a reason why it's usually a bad idea to work for/with family members.

If talking to your father fails to rectify the situation, then see a local attorney. By the way, if this was a gift, I believe anything over $11,000 is subject to a gift tax.