If I’m a commission-only employee paid a draw-against-commission and I leave my job but owe on my draw, am I required to pay back?

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If I’m a commission-only employee paid a draw-against-commission and I leave my job but owe on my draw, am I required to pay back?

I read on the city Department of Labor website that in order for employers to require an employee to pay back money owed on a draw, there needs to be specific writing in the contract and frequency of reconciliation must be included. My contract says that I must “satisfy all outstanding debts prior to leaving.” Is that language enough to require me to pay back?

Asked on August 12, 2012 under Employment Labor Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, that language is most likely is sufficient too  require you to pay back any amounts you owed on the draw. Certainly, it is enough to at least get the company in the courthouse door and put the issue before a judge, so you should assume that at a mininum, you could be required to spend the time and money to defend yourself (even if you end up winning), if the company elects to push the issue.


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