Is it legal for a corporation to run deals and not make up the difference for the employees?

UPDATED: Jul 7, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Jul 7, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Is it legal for a corporation to run deals and not make up the difference for the employees?

I am a hairdresser and I work for a corporation of salons. I make commision at the salon. 43% of my total services. They constantly run promotions for free services or discounted services. So I am literally working for free because we don’t get hourly either. Is it legal for a company to run these promotions and not make up the difference for the stylists?

Asked on July 7, 2012 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It is legal for companies to offer specials and deals which reduce commissioned employee's earnings:

1) The business has the right to set its pricing, to offer discounts and incentives, etc. It also has the right to determine employee wages, salary, or commission, and could, for example, entirely exclude some customers or some services from being commissioned.

2) Commissioned employees regularly are required to do work--whether administrative, meetings, or marketing, for example--which benefits the company but does not result in commissions for the employee, and this is legal.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption