missappropriated deductions from commish

[Lissalady]

Hello,

Please bear with me on this, there is so much to note. I was recently laid off by my employer. I am in California. Here is the important facts about the situation:

There are 2 separate companies in the same building owned by the same family. One is a metrology calibration lab, and the other sells test equipment and employs both inside & outside sales reps. MPC is the lab & MTE is the test equipment dealer...so keep that in mind as I will refer to each by those names. All sales reps (except contracted ones) get a commission of 6% of the profit on equipment sold, rented, leased etc...The figures of what was owed to what was paid were never without discrepancies. A commission log was only given when you really pressed them for it.

It was said that the freight in & out was taken out of the sale amount...they come up with the figures by dividing the monthly freight charges (fed ex & UPS) amongst all pieces sold. In Aug 2008 the MTE sales reps in agreement with MPC/MTE owners started an identifying process where we could include the acurate inbound freight, not the enormous amount spread out to everyone. Well in November a co worker of mine starting going through each item purchased & matching it with the transaction on the freight bills and it appeared to him that for some time now, the shipping bills for both MPC & MTE were being deducted from each sale of equipment as inbound freight charges. There were charges as high as $208.00 per piece sold...even a piece that weighed 2 lbs!!!! When he confronted the owner she basically admitted it and said they would look into it. Well, we knew they wouldn't so I volunteered to audit the info at home on my spare time and he would then apply the misappropriated charge credit to the correct sales reps. He gave me all of the commission spread sheets to have the exact figures.

Well, I see that there were several occasions that I sold something from inventory that had been there for years, no inbound freight would have applied, for $50.00 and it would incur a 109.00 inbound freight charge putting me in the negative. So ultimately I paid them to sell their item as any negatives were subtracted out of the commission totals for the month!!! Aargh! Even worse, they bill the MPC customers for shipping cost (already paid by MTE sales reps) and get that money so in esscense they are being paid twice for something that is a business right off anyway. Correct?? There is deductions applied in all kinds of areas...they are very dishonest people. By applying the misappropriated inbound freight the profit therefore was less...ultimately resulting in less commission if you get 6% of the profit.

I have figured what is owed to me for 2008 and it is more than $1000.00. Imagine how much is owed to all of the sales reps in every division (7 in California) all over the nation/world????

I have prepared a spreadsheet showing what I am owed for 2008 They are unaware of me having commission documents, my friend/co-worker is scared to death to lose his job so I haven't mentioned it either.

Thank you in advance for any suggestions? Do I have enough of a case to open a claim?

Thanks for your time!

Lissalady

 

[FlaRiptide]

I'm an accountant by trade and even I would need to reread your post three times to understand the descrepancy you allege.

Even though that may be a mute point. Unless you are a contracted employee the company is not obligated to pay any commissions to you or the other sales reps. Minimum wage is all they need to pay you.

Thus before getting yourself and everyone else fired, I'd determine who does or does not have a contract stipulating the commission that was to be received and on what basis it was to be calculated.

If you are still under the impression you are due $1,000, proceed with caution!

As you should realize having a job today, any job, is much better than having no job. With that said, is a $1,000 gain worth the risk of losing your job?

Tread lightly and consult a local attorney.

 

[Lissalady]

Thank you for your reply

Thanks for your advice. According to the DLSE Manual commissions as agreed are enforceable. Below is from the manual....

2.5.4 Commission. Labor Code § 204.1 defines commissions as: "Compensation paid to any person for
services rendered in the sale of such employer's property or services and based proportionately upon the amount or value thereof." Keyes Motors v. DLSE (1987) 197 Cal.App.3d 557.If the compensation is based on a percentage of a sale, the compensation plan is a commission. On the other hand, a compensation plan which pays employees for the number of pieces of goods finished, the number of appointments made or the number of procedures completed, is based on a piece rate, 2 – 2 (a) MAY, 2007
DIVISION OF LABOR STANDARDS ENFORCEMENT
ENFORCEMENT POLICIES AND INTERPRETATIONS MANUAL
2.5.4.1 Again, as with a piece rate plan, a commission plan may include a group of employees who share in the commissions earned.

If they agree to pay me 6% commission on each unit sold, it cannot possibly be legal for the company to apply an inbound freight amount of $190.00 when the item was picked up by an employee and brought to the facility. Wouldn't that be taking what would be profit on the sale & using it to pay for company expenses?? Obviously benefiting the employer.

I know the US department of Labor does not count commissions as part of yoyur wage but I beleive California does. Please let me know if I am missinformed, I do not like to have egg on my face so to speak.

Thanks you soo much!