Tooele, UT asked in Employment Law, Business Law and Civil Litigation for New York

Q: Can a company unilaterally withhold 100% commission due from a 1099 employee?

I made a mistake on a spreadsheet which caused pricing to be off by a few percent. I submitted the pricing sheet to the company. The company uploaded into their system and then approved all Purchase Orders from customers with the mistaken pricing (I did not approve any PO's). The company is now withholding all of my commission to pay back the difference unrealized by the pricing error. Is that legal? It is my only source of income and they unilaterally arent paying me despite them having received the pricing sheet before the customers placed a single order and then further approving every PO with the pricing on it. We only have a verbal agreement in place for past 8 years with no mention of liability.

1 Lawyer Answer
Michael David Siegel
Michael David Siegel
  • New York, NY
  • Licensed in New York

A: It depends on your agreement, which it appears in itself might be hard to prove.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.