Termination under contract

[Dave Fricker]

I have a two year contract with this company. I was being paid a salary plus a draw on future commissions. I received a termination letter which states that I have to pay back the draw or if I sign the letter I waive the right to receive my final paycheck and vacation time accrued and they won't sue me. No where in the contract does it state that I have to pay back the draw. It does state that if they want to terminate me they have to give me a 30 day written notice with equals one month pay plus any vacation time accrued. Can they Sue me for the draw? Don't they have to abide by the contract and pay me? Please help. I live in California.

 

[loku]

Draw on future commissions

A draw is actually a loan. It is an advance on future earnings. Generally, you pay back the draw out of earnings. If you have no earnings, you owe the employer the amount of draw you have not repaid.

They do have to pay you according to the contract, but they can subtract the amount you owe them from the pay due to you. It sounds like the draw you owe is more than the pay you have coming. If that is the case, they can set off the entire amount due you.