Can employers fine their employees

[kaymay]

What is the name of your state (only U.S. law)? Employer is in Michigan

I'm in sales and my employer has started fining employees upwards of $10,000 dollars for those who do not meet a set sales quota. Is this legal.

 

[pattytx]

What form does the "fine" take? Reduction in future comissions? Deduction from net pay (after taxes)? Something else?

Are you an outside salesperson?

 

[kaymay]

I am an outside salesperson. How this works is the company has certain product lines that they want us to sell a certain dollar amount of. If at the end of the year we have not reached that set amount they deduct a certain percentage of it from our future commissions. Between the couple of product lines the fines can be as much as $20,000. For some that is 15 - 20% of their yearly salary.

 

[pattytx]

If that's what the plan says, it's not illegal. Outside salespersons do not legally have to be paid a guaranteed salary, so any compensation provisions are a contractual agreement between the employee and the employer.