Can my employer keep my commission due to the mistake of another employee?

UPDATED: Sep 30, 2022

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Can my employer keep my commission due to the mistake of another employee?

I work doing collections hourly and on

commission. Back in 2012 a current employee

made a mistake that cost the company to have

to payback their clients. Now my employer has

taken all of the current employees commission

to cover the lot back from 2012. I was not

working in the department at e time. Should

everyone be penalized for the mistake that

happened back in 2012? Can you please

advise me if any legal actions can be taken

against them

Asked on August 17, 2016 under Employment Labor Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

IF the policy which was in place (and made known to you) is that the comany could do this, it would be legal: essentially, any commission policy or arrangement is legal, if known to the employess and at least implicitly agreed to (by working with knowledge of a policy, you are held to have agreed to it.) However, if it was not the known and in-effect policy, they can't do this: a company cannot take commisisons which employees earned from them except as per the then-existing commission policy. You could potentially sue your employer for the money, under the theory of "breach of contract"--that is, violating the agreement (even if unwritten) pursuant to which you worked and earned the commissions. Of course, suing your employer is a drastic step; think carefully before doing this.

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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