recoverable draw agreement
urway2destiny
19 Posts
Hi, I am looking for recoverable draw agreement. can some help me?
urway2destiny
19 Posts
Comments
Is there a global element to this, or is this just a California issue?
Are you wanting to recover from draw against commission or draw against regular pay?
If this is for use in California, you are going to need CA specific expertise and probably beyond what can comfortably be given on an internet forum. The basic mechanics are that some sort of salary is paid to a person who is exempt on some basis, and the payments made are a draw against future earnings on commission. The problem is that it's generally not practical to collect if the EE doesn't work out.
Another model often used is to pay a low flat salary while the EE gets accounts going and then kill the salary and pay on commission only.
Still another is salary or commission, whichever is greater.