Docking of Commission

[Frodoo]

What is the name of your state?Virginia – For the past the year I’ve been working as a commissioned employee. The employer recently instituted and is enforcing a policy as follows: “All reports are to be filed by 12 PM the next day via e-mail.” Because the work is commission only, the reports are done own my own time. The employer is now docking my pay for late e-mailed reports. Also it is coming from after tax dollars, and I’m concerned how it will reflect on my taxes. On my pay check stub listed as: Other Deductions: Late Reports. The docking is a large percentage of my earnings. Is this legal in Virginia and will I have tax complications?

 

[pattytx]

It will not have an effect on your earnings or taxes, since it is being deducted "after-tax". However, if you did not authorize the deduction in writing, it is not allowed. Now, if your commissions were being reduced (and you did not have a valid, enforceable contract that prohibited such deductions), it woul be legal.

What deductions can be made from an employee's wages?
The only deductions allowed are 1) payroll, wage or withholding taxes, and deductions otherwise authorized by law, and 2) those amounts authorized to be deducted by written and signed authorization of the employee. The authorization must be truly voluntary and not signed as a condition of employment. Virginia Code § 40.1-29(C).

Having said all that, the best advice I can give you is 1) file a complaint with the state Dept. of Labor and 2) turn them in on time from now on.