Charging back / holding commission pay ...

[bkthomas1]

What is the name of your state?What is the name of your state?What is the name of your state? Pennsylvania

Hello. I am a small employer. We pay our employees a base salary plus commission on wireless phone activations. The wireless carriers charge us back commissions if a customer cancels their service within 180 days.

I have two questions:

1. Can we legally charge our employees back those commissions they earned on customers who canceled their service within the 180-day "chargeback period" if we incorporate that into our written company policy?

2. Secondly, can we legally hold the employee's last commission check until the 180-day period is up, if the employee quits or is terminated?

I can't seem to find anything online regarding Pennsylvania's laws on this matter.

Thanks for reading.

 

[cbg]

That's not surprising. I find the PA state website uncommonly confusing to follow.

I don't know the answers to your questions; while I have had employees in PA none of them have been paid on commission, and commission law varies from state to state. My suggestion would be to CALL the PA DLI - while their on-line information setup leaves much to be desired, in my opinion, I've found them to be extremely helpful if you can get them on the phone.

 

[JETX]

Can we legally charge our employees back those commissions they earned on customers who canceled their service within the 180-day "chargeback period" if we incorporate that into our written company policy?

As long as any deductions at ANY time do not fall below the minimum wage, you shouldn't have a problem.

Secondly, can we legally hold the employee's last commission check until the 180-day period is up, if the employee quits or is terminated?

According to PA law, no.
"Section 5:
(a) Separated Employees. Whenever an employer separates an employee from the payroll, or whenever an employe quits or resigns his employment, the wages or compensation earned shall become due and payable not later than the next regular payday of his employer on which such wages would otherwise be due and payable. If requested by the employe, such payment shall be made by certified mail."
Source: http://www.dli.state.pa.us/landi/CWP/view.asp?a=185&Q=58222

 

[bkthomas1]

Thanks!

So what do you think I should do in the case of chargebacks for employees who no longer work for me? Can I send them a bill? haha!

Seriously, though, thanks for your feedback. It's much appreciated.