Q: Can my employer take back commission I've earned and been paid for and also paid taxes on?
I am an outside sales person and earn a base salary as well as commission if my sales total a certian amount (i.e. $3000=30% of sales, $4000=40%, etc.). After I sale an account, it is handed over to a franchisee and I no longer have anything to do with it. If the account cancels before 120 days has passed, my employer takes back any commission I earned on it. Not only does he take back that accounts commission, he also refigures the whole month's sales that account was sold in and if it makes the total of accounts fall below the $3000, he takes back my commission from any sales I made that month. For example- in January I sell 4 accounts totaling $5000, which gives me a commission of $2500, which I am taxed on. 90 days later a $2500 account cancels service. He takes back the commission for that account ($1250), but then refigures the whole month. This drops my sales below $3000, so he then also takes back the commission on the other 3 accounts as well. Is this legal?
A: Depends on your written commission agreement: https://www.oregon.gov/boli/TA/Pages/TA_FAQ_Commissions.aspx
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