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  1. #1
    Join Date
    Aug 2009
    Posts
    1

    Default Employer Taking All Wages to Fill Bonus Pool

    My question involves employment and labor law for the state of: Utah
    My husbands company has a written policy about each employees individual bonus pool. A BP is created for each employee that they contribute a certain amount to from each weeks check. Then they get paid half of it every quarter. Policy states that if BP is under $500 dollars then they take out 20%. Once it is over $500 they take 10%. The BP is created to cover the companies interest/wallet incase the employee/salesman has a sale that pulls.

    If the employee were to have a sale that pulls and it reduces their bonus pool to less than $500, they start pulling out 20% again instead of 10% till its over $500, then start pulling 10%.

    Well, they made a clerical error and paid him his full BP this last quarter. Now, today, they have taken 100% of his paycheck to put back in the bonus pool. Shouldn't they only take 20%?

    And a second question please, regarding this...

    When the employee quits, they keep what is in the BP for themselves, whether or not the salesman has any pulls in the months after. They litarally keep thousand of dollars of employees money. How can that be leagal. Is there anything he and past employees can do about that?

    I hope I explained this well enough. Any help is appreciated.
    Thank you in advance.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Employer Taking All Wages to Fill Bonus Pool

    Can you better describe this scheme? Surely these deductions aren't being made from an hourly wage. Are you speaking of a commission-based compensation scheme, where a portion of the commission is withheld pursuant to the written agreement?

  3. #3
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Employer Taking All Wages to Fill Bonus Pool

    Yeah, I'm having a big problem with this. It sounds suspiciously like a kick-back scheme.

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