I have a question about commission earned and then the company making me pay back the commission a year later

Question

I work for a precious metals dealer. There have been many deals that I have closed and received commission on .... but months, or even years later, when the client wants to sell back some or all of their metals to the company (which they are aloud to do), the company will then retract the commission that I made on that sale (even though the company is still making money off of the person selling back their metals). Is this legal?

James L. Arrasmith · Answer

Your situation with commission clawbacks in precious metals sales raises some important legal considerations under California law. The key factor here is whether your commission agreement explicitly states these terms about repayment of commissions on buybacks. 
 
In California, earned commissions are considered wages, and employers generally cannot take back wages that have been fully earned. However, if your written commission agreement clearly states that commissions are subject to clawback when metals are sold back, this practice might be legal - though it seems questionable since the company still profits from the buyback transaction. 
 
You should review your commission agreement closely and consider consulting with the California Labor Commissioner's Office or an employment attorney who can review your specific situation. If there's no written agreement specifying these clawback terms, or if the terms weren't clearly disclosed when you were hired, you may have grounds to challenge these deductions from your earned commissions.

Q: I have a question about commission earned and then the company making me pay back the commission a year later