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Did my Employee Get The Best of ME?

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What is the name of your state (only U.S. law)? CA

I had to lay off an employee due financial hardships with my company. My employee was paid salary + commissions and when I laid them off I paid them for their final two weeks and they had no commissions outstanding. I also offered them an Idependent Contractor option, to where they can work when the wanted and would receive commission for the work they did and they turned it down. (this option was at a higher commission rate in lieu of salary)

A week after I laid them off, a commission that they worked on a few months ago came through and being a kind hearted employer, I told them I would pay them the commission at their regular salaried comission rate.

After they cashed they check on the commissions that I sent them, I recevied an invitation to go to the labor board and explain why I did not pay them the higher commission rate that I offered with the IC option.

I understand that nice guys finished last, but this is retarded. I am being dragged through the mud with CA Labor commission becuase I did the right thing and now I am going to an official hearing to try and get me to give them more money. I offered them the IC option and they turned down.

All of my employees sign a commission schedule and they only one I had signed by them was the original salary + commission schedule. Whats worse is I did not even have to pay the employee anything. Where can I draw the line with the state? Am I suppossed to just sit down and go with their program?
 


justalayman

Senior Member
I can only presume the state does not understand the situation. When asked why you did not pay at the higher IC rate, all you should have said is that you have not contracted the party as an IC and the commission was earned while employed with you.
 

pattytx

Senior Member
And not exactly your question, but if he didn't meet the qualifications for IC status before, he wouldn't now anyway. You need to be very careful with that.
 

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