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Repay Commission/Draw?

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H

helpinstl

Guest
State - Missouri

I signed a contract that paid me a draw against future commissions for 8 months. It has been almost three years since I signed the contract and the company is still paying the draw. If I quit, would I be responsible to repay the draw for 8 months or for the entire 3 year period?
 


L

loku

Guest
I believe a “draw” is an advance on future commissions. It is the same as a loan, or a payment in advance. So when you leave, the total draw for your entire period of employment should be compared to the total commissions earned, and if the draw is greater than the earned commissions, you would have to repay the overage.
 

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