QUESTION

I am a sales rep with a company and am on a draw against commission. Will I have to pay the employer for the draw when I leave to find a better job?

Asked on Apr 09th, 2012 on Business Law - Tennessee
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I have been with the company 1 year and can''t get ahead.
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2 ANSWERS

Bankruptcy Attorney serving Tullahoma, TN at Labar Law PLLC
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The answer to your question will be determined by the terms of your particular employment relationship. The first step would be to check the terms of any employment contract.  In the absence of an employment contract, your draw, to the extent it exceeds your normal salary would be an advance which would have to be repaid. This answer is for general informational purposes only and is not intended to constitute legal advice or a recommended course of action in any given situation. This answer is not intended to be, and should not be, relied upon by the recipient in making decisions of a legal nature with respect to the issues discussed herein. The recipient is encouraged to consult independent counsel before making any decisions or taking any action concerning the matters in this answer. This answer does not create an attorney-client relationship between the author (John R. LaBar)/Henry, McCord, Bean, Miller, Gabriel & LaBar, P.L.L.C. and the recipient.
Answered on Apr 23rd, 2012 at 12:16 PM

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Litigation Attorney serving Greenwich, CT
Partner at Hilary B. Miller
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As a general matter, the unearned portion of a salesman's "draw" is a loan that must be repaid upon termination of employment, unless the parties have otherwise agreed or some other principle (such as industry custom or practice) controls.
Answered on Apr 09th, 2012 at 4:54 PM

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