slnlaw
  • Home
  • About
    • Reviews
    • Slnlaw Offices
    • Blog
    • slnlaw core values
    • Publications and Interviews
    • New Client Intake and Consultation
    • Contact
  • Attorneys
    • Emily Smith-Lee >
      • 2018 Lawyer of the Year
    • Jenna Ordway
    • Rebecca Rogers
    • Andrew Silvia
    • Elijah Bresley
  • Employment Law Solutions
  • Estate Planning
  • Business Law Solutions
    • Small Business Law
    • Business Contract Basics
    • Civil Suit Defense
    • Legal Issues for Start Ups
    • Trademark Basics
    • How to Incorporate
    • Sale of Business
  • Legal FAQs
    • Estate Planning FAQs
    • Probate FAQs
    • Small Business FAQs
    • Wage Act FAQs
    • Commission Pay FAQs
    • Overtime FAQs
    • Independent Contractor FAQs
    • Non Compete FAQs
    • Employment Discrimination FAQs
    • Employment Termination FAQs
    • Massachusettts Unemployment FAQs
    • Severance Package FAQs
    • Medical Leave FAQs
    • Sexual Harassment FAQs
    • Employer FAQs
    • Civil Lawsuit FAQs

Can my Employer Deduct Expenses From my Commissions?

For employees paid an hourly wage or salary, the law is relatively clear- the employer cannot deduct from your paycheck costs that should be borne by the employer.  Put another way, the only lawful deductions are taxes, garnishments, deductions to pay for things that benefit the employee (i.e., health insurance), and in some circumstances deductions the employee has agreed to.

Some commission policies, however, include in their calculation an offset for costs that would not be deductible from an employees salary or hourly wage.  For example, a deduction for the cost of product for hair stylists.

The law in Massachusetts is not settled on this question.  Employers argue that they have a right to set the amount of commissions and include these deductions as part of the calculation.  There is, however, a compelling argument that has been entertained by the court at the trial level that this is no different that unlawfully spreading the employer's operating cost to the employees.

The correct answer may vary from situation to situation, and depend in part on how the commission policy is drafted.  If you have questions about deductions from your commission pay, you should consult an employment lawyer and get an individualized assessment.


Learn more here about commission pay under the Massachusetts Wage Act.

Need Help With a Commission Payment Issue?

Call (781) 784-2322
OR
Schedule a Free Information Call
When should I be paid commissions?

Sharon MA

46 South Main Street
​Sharon MA 02067

(781) 784-2322
Serving Eastern and Central Massachusetts
Greater Boston Referral Resources
slnlaw solutions
Refer a Friend
slnlaw publications and interviews
​slnlaw privacy policy
Chester MA
26B Main Street
Chester MA 01011
(413) 667-2322
Serving Western Massachusetts
Western MA Referral Resources

Copyright 2022, slnlaw
  • Home
  • About
    • Reviews
    • Slnlaw Offices
    • Blog
    • slnlaw core values
    • Publications and Interviews
    • New Client Intake and Consultation
    • Contact
  • Attorneys
    • Emily Smith-Lee >
      • 2018 Lawyer of the Year
    • Jenna Ordway
    • Rebecca Rogers
    • Andrew Silvia
    • Elijah Bresley
  • Employment Law Solutions
  • Estate Planning
  • Business Law Solutions
    • Small Business Law
    • Business Contract Basics
    • Civil Suit Defense
    • Legal Issues for Start Ups
    • Trademark Basics
    • How to Incorporate
    • Sale of Business
  • Legal FAQs
    • Estate Planning FAQs
    • Probate FAQs
    • Small Business FAQs
    • Wage Act FAQs
    • Commission Pay FAQs
    • Overtime FAQs
    • Independent Contractor FAQs
    • Non Compete FAQs
    • Employment Discrimination FAQs
    • Employment Termination FAQs
    • Massachusettts Unemployment FAQs
    • Severance Package FAQs
    • Medical Leave FAQs
    • Sexual Harassment FAQs
    • Employer FAQs
    • Civil Lawsuit FAQs