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  1. #1
    Join Date
    Aug 2012
    Posts
    1

    Default When Can You Legally Take a Kickback from a Salesperson

    My question involves business law in the state of: Florida

    If I am responsible for contacting and engaging an outside organization to perform a service for my employer, and I propose to a close friend that I may be interested in pursuing his employer to provide the service, would it be illegal to accept a portion of his commission received from his employer for "referring" us?

    If the answer is yes, would it still be illegal if the fee charged for the service was below what other firms would perform the service for? - rather than inflating the price in order to receive a higher commission

    And also would it make a difference if a transaction of this nature was disclosed upfront to both employers?

    Thank you

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Would This Be an Illegal Kickback

    Prior disclosure and approval from your employer of a commission/spiff to you, would be acceptable, as long as it is not in violation of law.

  3. #3
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Would This Be an Illegal Kickback

    Don't know if it will be illegal (unless you're employed by a government agency), but I guarantee that it is a conflict of interest with your present employer. I guarantee if you worked for our company and we caught you doing that, you'd be cleaning your desk out by the end of the day.

  4. #4
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,043

    Default Re: Would This Be an Illegal Kickback

    There are no laws prohibiting employees from taking kickbacks from sales people. There are also no laws prohibiting employers from firing employees who take kickbacks from sales people.

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Would This Be an Illegal Kickback

    Or from firing employees who give kickbacks to vendors' salespeople.

  6. #6
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Would This Be an Illegal Kickback

    UNLESS we're talking about the government. Taking or offering kickbacks on federal procurement is punishable by up to five years in prison, $25,000 in criminal fines, $50,000 in administrative fines, etc...

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