6th Circuit Court’s Decision Provides Guidance on Draw-on-Commission Policies
In a recent decision, the U.S. Court of Appeals for the 6th Circuit—which covers Kentucky, Michigan, Ohio, and Tennessee—held that an employer’s week-to-week, commission-only pay system was generally valid. However, it was illegal for the company’s policy to state that employees had to repay immediately upon termination draws that had been given during employment.