Can your employer deduct your vehicle allowance from your commission if you’re full-time?

UPDATED: Oct 1, 2022

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Can your employer deduct your vehicle allowance from your commission if you’re full-time?

I’m currently a full-time employee with a draw salary commission. Can my employer deduct my vehicle

allowance from commissions paid if I’m an employee with a draw commission? When balancing out my commission payments they are deducting $500 monthly vehicle allowance from my commission draw prior to settling what is owed each month.

Asked on December 12, 2018 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It is legal if you are aware that those are the terms for your commission; if you keep working there after being made aware of the terms and conditions on your employment, you are held to agree to them. (Note: commissions are not protected by the labor laws the way base salary or wages are.) So from when you are made aware that these are the terms under which you work onward, they may deduct.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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