Help wanted: Are commission pay changes legal?

From time to time Help Wanted focuses on a single topic. Today's subject is commissions.

"A retroactive change in terms and conditions would violate the labor law," the department said.

Also, commission-sales agreements, or any changes to them, must be in writing and a copy given to the sales people affected, the department said.

I also spoke with employment attorney Sabrina N. Hannam, who noted that by taking back some of your husband's paid-out commission, the company essentially made an unauthorized deduction from his wages.

Section 193 of New York State labor law prohibits an employer from making deductions from employees' wages unless permitted by law or authorized by workers, Hannam said.

"[Section] 193 appears to be applicable in this instance since [it] was designed to protect employees from having charges made against their earnings, except under limited circumstances, or for the benefit of the employee," said Hannam, whose law firm is in Rosedale. "The information provided does not suggest that the charges against the employee were for the benefit of the employee, but [were] for the sole benefit of the employer."

As for recourse, he should first consider talking to the company, if he hasn't already, or show a manager a copy of this column.

If those efforts are unsuccessful, he should contact theNew York Labor Department at 516-794-8195 or 212-775-3880.

"If the sales representative is an independent contractor, he needs to be paid [a] commission no later than five days after it is earned. The definition of 'earned' may be changed prospectively [or in the future] at any time. If the sales representative is an employee, he needs to be paid [a] commission monthly. Where there are significant gaps between earned commissions, an employer can provide recoverable draw amounts to meet the requirement."