Recoverable and non-recoverable draw

[willjR0k5]

I live in the state of Minnesota. My company is based in Virgina.

I've been with my company for 8 months since January.

Below is the language of my draws (3 months non-recoverable and 3 months recoverable). I have sold enough in months April - June to cover the recoverable draw in full plus a little bit additional.

My question - if I leave before my 12 months...will I owe the company any of the non-recoverable draw if I resign? A non-recoverable draw doesn't contain a "balance"... however the language below isn't clear to me if I would or would not owe anything.

The Company will guarantee you a minimum monthly variable compensation payment of $10,000.00 for the months of January, February, and March 2019 (the “Non-Recoverable Draw”). If on any given month your actual earned commissions exceed the Non-Recoverable Draw, the Company will pay you the excess amount as well. For the avoidance of any doubt, the excess amount is defined as actual commissions earned in any given month less the monthly Non-Recoverable Draw, calculated monthly.
In Addition, The Company will provide you with a $10,000.00 Recoverable Draw (the “Recoverable Draw”) for the months of April, May, and June 2019. The Recoverable Draw will be recovered exclusively from your 2019 actual earned commissions on a monthly basis. Commissions earned after 2019 will not be subject to the repayment of the Recoverable Draw.

In the event employment is terminated by either the Company, for Cause as defined below, or voluntarily by the Employee within 12 months of your hire date and prior to full recovery by the Company, the Employee will be responsible for any outstanding Recoverable Draw and Non-Recoverable Draw balances on the date of termination.

 

[LdiJ]

I live in the state of Minnesota. My company is based in Virgina.

I've been with my company for 8 months since January.

Below is the language of my draws (3 months non-recoverable and 3 months recoverable). I have sold enough in months April - June to cover the recoverable draw in full plus a little bit additional.

My question - if I leave before my 12 months...will I owe the company any of the non-recoverable draw if I resign? A non-recoverable draw doesn't contain a "balance"... however the language below isn't clear to me if I would or would not owe anything.

The Company will guarantee you a minimum monthly variable compensation payment of $10,000.00 for the months of January, February, and March 2019 (the “Non-Recoverable Draw”). If on any given month your actual earned commissions exceed the Non-Recoverable Draw, the Company will pay you the excess amount as well. For the avoidance of any doubt, the excess amount is defined as actual commissions earned in any given month less the monthly Non-Recoverable Draw, calculated monthly.
In Addition, The Company will provide you with a $10,000.00 Recoverable Draw (the “Recoverable Draw”) for the months of April, May, and June 2019. The Recoverable Draw will be recovered exclusively from your 2019 actual earned commissions on a monthly basis. Commissions earned after 2019 will not be subject to the repayment of the Recoverable Draw.

In the event employment is terminated by either the Company, for Cause as defined below, or voluntarily by the Employee within 12 months of your hire date and prior to full recovery by the Company, the Employee will be responsible for any outstanding Recoverable Draw and Non-Recoverable Draw balances on the date of termination.

You are going to have to have an attorney review your employment agreement. It sounds to me like their intent is that you have to pay back both any recoverable or non recoverable draw that wasn't covered by commission if you don't remain with the company at least 12 months. However, that is contradictory where the non recoverable draw is concerned, so again, you really need an attorney review.