Company withholding final paycheck; stating I owe for commissions

timkay2

New Member
Jurisdiction
New Jersey
My employer (located in NJ, I'm in OH) issued my final paycheck and withheld almost all of it because they stated I "owed" the company money based on a new commission structure they had implemented back in February 2015. I was a salaried plus commission employee and did not work on a draw. They are stating that since I was in a negative deficit, they had the right to hold back the money from my last salaried paycheck.

The last document that I signed was an employment agreement back in February 2014 that stated I was a salaried plus commission employee. There was no wording on withholding money for not meeting sales goals. When they rolled out the new pay plan, no documents were ever issued for us to sign.

Do they have the right to withhold my final salary?

My company, located in New Jersey (I'm in OH), withheld almost all of my final paycheck after I had given two weeks notice stating that:

"you
owed 1,743.09 that is owed back for commission that were paid but not earned. I took the money out of your paycheck that I could after all your deductions that came out. So 225.00 was paid back toward the $1,700."

I ended up receiving $41.48 instead of my regular salary amount. Consequently I am being socked by my back for insufficient funds because of automatic withdrawls. The company implemented a new commission structure back in February 2015, but no documents were ever issued requiring signatures agreeing to the plan. When I was hired in February 2014, I signed an agreement stating I would be paid on a salary plus commission, not on a draw basis.

I also sent an email on October 3rd inquiring if I would receive a final paycheck and was told I would. There was no mention of withholding funds. Had I known It would only be for $40, I wouldn't given two weeks notice. My assumption was I was going to be paid my final salary for the the last two weeks I worked.

How can withhold money for back commissions that were paid, but not earned? Why would they pay me a commission if I didn't earn it?

Can they legally withhold my last paycheck based on the information stated above? I've attached the employment agreement from 2014.

Thank you,

Tim
 

Attachments

  • Employment+Agreement.compressed.pdf
    382.8 KB · Views: 3
Last edited by a moderator:
If NJ has a state agency that oversees wages, I suggest you contact that agency.
 
The link provided in the post above is for a wage claim/complaint if you worked in NJ. Since you worked out of your home office in Ohio per your attachment, you should file a wage claim/complaint with the Ohio "DOL" (even though employer located NJ). The law in the state where you worked applies.

Filing a Wage and Hour Claim - Ohio - Workplace Fairness
 
Back
Top