Draws

A draw is similar to a loan while the employee is on the payroll. The commissions are used to "repay" the loan, thereby reducing the indebtedness owed. However, a draw is a hybrid between a loan and a fixed salary. It's like a salary because all payroll deductions must be taken out of every draw check. As with any salary, a draw is considered wages. This means it must be paid every pay period and vests upon the employee terminating (voluntarily or involuntarily).

Draws against commissions to be earned at a later date are legal only if the draw is equal to at least the minimum wage due the employee for all hours worked in each pay period. The draw may be reconciled against earned commissions at an agreed date or when the commission is earned if there is an express agreement to that effect between the employer and the employee. If no express agreement exists, the draw will be considered the basic wage in lieu of salary and fix the employee's minimum compensation.

For a free consultation with an experienced employee rights attorney, contact David Spivak:

  • Email David@SpivakLaw.com
  • Call toll free (877) 277-2950
  • Visit The Spivak Law Firm, 9454 Wilshire Blvd., Ste 303, Beverly Hills, CA 90212
  • Fax (310) 499-4739

For further information on your rights in the work place, please visit our other websites:

Discrimination FightDiscrimination.net
Wrongful termination FightWrongfulTermination.com
Sexual harassment FightSexualHarassment.com
Unpaid wages and overtime MyWorkMyWages.com
Family and medical leave FMLALawyers.com
Pregnancy discrimination PregnancyRights.com
Disability discrimination FightDisabilityDiscrimination.com
Age discrimination FightAgeDiscrimination.com
Employee Rights Blog CaliforniaEmployeeRightsAttorney.
blogspot.com



footer
Help@FMLALawyers.com|(877) 277-2950 Toll Free|(310) 499-4730 Office|(424) 245-0658 Mobile

Who We Are|What We Do|Press & Publicity|Blog|Contact Us|Site Map|Legal Disclaimer

© 2012 The Spivak Law Firm - All Rights Reserved

Designed & Developed By JSDeBord, Inc.