Sales Commission Recoverable Draw Repay

[Raidomenos]

What is the name of your state? CA

I accepted a technology sales position that offered a 3 month recoverable draw on top of base salary. Things might not work out and I may have to move on from the company. Does the company actually have recourse to force me to pay back that draw? I'll note that it was connected to payroll and taxes were taken from it (i.e. it wasn't treated as a loan in the strictest sense).

Thanks

 

[PayrollHRGuy]

Do you not understand what "recoverable draw" means?

It is, for all intents, a loan.

 

[HRZ]

Inside sales or outside?

Nothing in CA is easy when it comes to recovery of wages paid ...and there are multiple on line commentaries about CA specifics and problems as to " recoverable draws "
..start reading .

 

[Raidomenos]

Outside. Any specific on-line commentaries you recommend?

 

[FlyingRon]

https://www.dol.gov/whd/overtime/fs17f_outsidesales.pdf

 

[PayrollHRGuy]

I'm not sure how the outside sales exemption applies in this case. As we have no indication that the base salary isn't in keeping with the minimum wage.

 

[HRZ]

CA imposes even tougher requirements to be " outside " ...min of 50% must be time away from place of employment . Double check your situation

 

[PayrollHRGuy]

CA imposes even tougher requirements to be " outside " ...min of 50% must be time away from place of employment . Double check your situation

The Federal Regulations does much the same,

Customarily and Regularly

The phrase “customarily and regularly” means greater than occasional but less than constant; it includes work normally done every workweek but does not include isolated or one-time tasks.