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Macy’s West Clawback of Employees’ Sales Commissions California Class Action

It’s frustrating when a person buys something at full price and the item is shortly afterwards put on sale. It’s nice when a company is willing to give the person a refund to make up for this. But does the company then have the right to take back some of the commission the sales associate earned on the sale? The complaint for this class action says that Macy’s West Stores, Inc. cannot take back what they’ve previously paid their sales associates.

The class for this action is all current and former employees of Macy’s West Stores who worked for Macy’s in California as commissioned sales employees, between October 12, 2014 and the final judgment in this case. 

Plaintiff Craig Tessitore, a sales associate at Macy’s, was losing part of his earnings due to the store’s Price Adjustment chargeback policy. The policy states, in part, “Because the Price Adjustment happens within the Eligible Return Period, the amount of the Price Adjustment is considered a Return and is applied against the Original Associates Gross Sales and the Original Associate retains the remaining value of the original sale.” 

The store’s Even Exchange policy permits the deduction of wages in another instance as well: when a customer buys an item and then exchanges it for essentially the same item, for example, when a customer buys a shirt in size 12 and then returns it for a size 14. 

As the complaint says, the sales associate loses money “despite the fact that Defendants do not lose any money on the exchange” and despite the fact that “Defendants’ decision to discount merchandise after the sale is a business decision totally beyond the control of the Sales Employees.”

The complaint claims that these later deductions force sales associates to shoulder the store’s costs of doing business. It also claims that deductions of commissions after the employee is paid are illegal under the California Labor Code. Also illegal, the complaint says, is claiming to pay an employee one amount while actually paying another amount. The complaint claims that this provision also applies in this case.

The law also requires that companies pay employees promptly when they quit or are terminated. However, the complaint says that Macy’s West issues statements indicating that full final wages are being paid but withholds part of the wages. This requires that the employee detect the discrepancy and then ask for the missing wages, the complaint says.

The complaint claims violations of the California’s Labor Code, its Wage Order No. 7-2001, and its Labor Code Private Attorneys General Act.

Article Type: Lawsuit
Topic: Employment

Most Recent Case Event

Macy’s West Clawback of Employees’ Sales Commissions California Complaint

October 12, 2018

It’s frustrating when a person buys something at full price and the item is shortly afterwards put on sale. It’s nice when a company is willing to give the person a refund to make up for this. But does the company then have the right to take back some of the commission the sales associate earned on the sale? The complaint for this class action says that Macy’s West Stores, Inc. cannot take back what they’ve previously paid their sales associates.

macys_labor_complaint.pdf

Case Event History

Macy’s West Clawback of Employees’ Sales Commissions California Complaint

October 12, 2018

It’s frustrating when a person buys something at full price and the item is shortly afterwards put on sale. It’s nice when a company is willing to give the person a refund to make up for this. But does the company then have the right to take back some of the commission the sales associate earned on the sale? The complaint for this class action says that Macy’s West Stores, Inc. cannot take back what they’ve previously paid their sales associates.

macys_labor_complaint.pdf
Tags: Employment Violations, Failure to Pay All Wages Due at Termination, Unfair or Unlawful Clawbacks of Commissions