Withholding Commissions

MB1004

Hi-
Does anyone know if there is a law (or a link to info about it) or regulation out there that clarifies if sales commissions are actual wages?

Here's my situation...Employee failed to return from FMLA leave. In her initial notification, we let her know that if she failed to return from leave, we would collect all health ins premiums paid on her behalf for that time period. I know you cannot deduct money from their paycheck w/o prior authorization, but how about her last commission check? She's due one last check for sales shipped prior to her FMLA, but is also going to owe us about $900 for premiums. Do we have to go after that seperately (which most likely means just eating it) or can I take that out of her commission check?

Shadowfax

Whether you are the employer or the neighbor accross the road holding mon ey for someone, the stakeholder is in no better position to collect a debt to him than any other creditor. That is, without written authorization or a valid judgement, you cannot garnish or otherweise attach the funds you hold. Sorry. And, the money you owe the employee is wages.

MB1004

Thanks for the advice. I'd come to that same conclusion yesterday and decided to play it safe. She was notified in writing that she would owe the money but there was no confirmation from her on the subject. I'd rather have a happy former employee who thinks they got the best of us than a disgruntled one that looks for an excuse/reason to sue.