Worked for a large time share company. Left due to Covid.

I have an employment (1099) contract that states that the company holds a reserve of 10% out of each paycheck to cover "chargebacks" if you leave the company. Once each sales account has made six timely payments, you get your reserve back. The company is Westgate. Well, they are allowing customers to skip payments, which is not addressed in my contract. By allowing customers to skip, they are, I think, breaking their agreement with me and avoiding paying me. Both a current and former manager told me that WG will do anything they can to hold your draw back in hopes you give up trying to get it back. They; advised me to "stick it out" to max out my draw, which is the only way I would get it back. I was unwilling due to Covid and lack of proper protection procedure. This is related to the next part of this.
They pay a "draw" to current employees. Sixty dollars a day. When you get a commission, they take that draw back. Maxing out a draw means that you have reached the 3K point and have not had sales. Employees that do this are then let go. But they don't have to pay back the draw. The company currently owes me over 4k and despite me pointing out all these things, refuses to return my reserve. Do I have any legal standing? I did not agree to allow people to skip payments at my expense.

1 answer  |  asked Oct 7, 2020 05:27 AM [EST]  |  applies to Tennessee

Answers (1)

James Becker, Jr.
I expect that it will depend on what your contract provides. Generally speaking, an employer is not entitled to just keep your commissions as those are your wages. I also expect that if the employer is entering into a side agreement with the customer to skip some payments, a court would not permit that to be a valid basis for withholding your income beyond the 6 month period.

posted by James Becker, Jr.  |  Oct 7, 2020 07:14 AM [EST]

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