In the ever-changing world of work, commissions provide a way to reward employees for their sales achievements.
While they provide a financial incentive, questions arise about the circumstances under which employers can withhold these earnings, and how employees can seek to recoup withheld amounts.
1. When can employers withhold commissions?
In Florida, employers can hold onto commissions under specific circumstances. These situations usually revolve around agreements made between employers and employees. If an employee fails to meet set targets or violates company rules as specified in their contract, employers might choose to withhold commissions as a consequence.
2. What is the process for withholding commissions?
If employers decide to withhold commissions, they must go about it in a transparent manner. This means providing written notice to the employee explaining the reasons behind the decision in a straightforward and easy-to-understand way.
3. How can withheld commissions get reclaimed?
When employees believe that their commissions have been withheld unfairly, they can take steps to recoup their earnings. First, they should carefully review their employment contract and any related documents. This will help them understand if they have fulfilled their end of the bargain. Following this, schedule a meeting with the employer. During this conversation, employees should stay calm and present any evidence that supports their side of the story.
The U.S. has more than 2,158,440 commissioned sales associates, all of whom rely on those commissions as part of a salary. If a dispute arises, employees have the right to get the money they worked hard for.