RESOLVED: Terminated Employee - Commissions / Deduction

[foleyt]

What is the name of your state? Colorado

We terminated a 100% Commissioned Salesman, he still has some open jobs that he will be paid for once we are paid, that's not the problem.

Some of the still open larger jobs are requiring some of my other 100% commissioned salesman a lot of their time in fixing all the problems and screwups made by the terminated employee. Of course they will keep these customers they are helping with.

My questions is: can we charge the salesman time that are fixing problems against the terminated employees commission? We would document all charges with dates and times and use the same hourly rate we use to determine labor costs.

 

[cbg]

Short answer - no, you can't.

Longer answer - CO law prohibits fines (which is what this would amount to) for employee behavior or actions.

What would be permissible, however, would be instead of penalizing the termed employee, to reward the employees who are making the fixes with bonuses, paid time off or some other form of approval.

 

[foleyt]

cbg...thank you for the great advice. We will be handling this via bonuses.

 

[cbg]

Excellent. Glad I could help. Thanks for the follow up - it's nice to know the end of the story!

 

[quincy]

Temporary bump to remove spam from the main board