G
G

GordonGekko

Enterprise Account Executive

Fire Starter
Contributor
Good Citizen

Payroll Deduction

Employer is asking me to sign a document authorizing a deduction of my wages. Exempt employee. Not an expert but I think pay deductions for exempt employees in the US are not allowed (outside of the mandatory ex. withholding taxes, social security, etc) without consent. In this case, they are asking me to sign a document to authorize the deduction. What happens if I simply don't sign? Anyone else have experience with this? Thanks
🧠 Advice
💰 Compensation
🧢 Sales Management
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31 comment

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antiASKHOLE
Tycoon
6
Bravado's Resident Asshole
What is it that they are wanting to deduct? Maybe it has to do with clawbacks?
poweredbycaffeine
WR Lieutenant
6
☕️
This is the key info we all need. Help us help you.
GDO
Politicker
0
BDM
Yeah this is crucial. If it’s clawbacks they can just deduct it from future pay imo
GordonGekko
Fire Starter
-2
Enterprise Account Executive
Salary
GordonGekko
Fire Starter
-2
Enterprise Account Executive
Salary deduction of some commission yet we have no clawback policy in place. Therefore I’m being asked to voluntarily sign a form to allow for them to deduct because it’s not policy. Make sense?
braintank
Politicker
0
Enterprise Account Executive
@GordonGekko INAL but based on my experience working for a CA-based company (and googling) being "exempt" has nothing to do with deductions.

It just means you're ineligible for overtime pay (https://www.paylocity.com/resources/resource-library/blog-post/exempt-vs-nonexempt/, https://www.adp.com/resources/articles-and-insights/articles/t/the-difference-between-exempt-and-non-exempt-employees.aspx, https://www.calchamber.com/california-labor-law/exempt-nonexempt-employees)

You've provided some additional details, which makes it seems like your company is asking you to sign a comp plan that has a clawback policy you don't like.

If that's the case, your options are:

1) Refuse to sign (and likely lose the job).

2) Sign and deal with ramifications if you get into a clawback scenario.

3) Point out the discrepancies in the comp plan and what they're asking you to sign and see if HR or leadership can help.
GordonGekko
Fire Starter
-2
Enterprise Account Executive
Not a comp plan. This is a one off voluntary ask to agree to salary being deducted. The reason exempt status is relevant here is because there are rules around what you can and cannot take from an exempt employees income.
braintank
Politicker
2
Enterprise Account Executive
This goose chase is becoming frustrating...

Deduced for what???

Why don't you just upload what they want you to sign, or type the part that's giving you heartburn.

braintank
Politicker
2
Enterprise Account Executive
You're really down voting me for trying to help?
C'mon bro...
oldcloser
Arsonist
5
💀
Can we start with where you are, why you’re exempt, what the deduction is for, and how much they want to deduct? If you forgot to pay your child support they wouldn’t ask. If you forgot to pay your taxes last year and weren’t really exempt, they wouldn’t ask.
CuriousFox
WR Officer
3
🦊
👀🍿
GordonGekko
Fire Starter
-3
Enterprise Account Executive
This is not taxes or child support.
oldcloser
Arsonist
4
💀
I you read my post, I just told you that. You're actually a moron.
jefe
Arsonist
4
🍁
Hopefully some financially-savvy American savages can step in to help. Just don't sign anything you're not comfortable with until you can get comfortable with it.
LambyCorn
Arsonist
1
A mfkn E
goes for everything!
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
"WHO" at your employer is asking for this?
"WHY" are they asking for this?
Is everyone being asked for this?
Have you been there awhile or are you new?

I'd be VERY wary. Hold off signing it till you get answers and maybe run it by any lawyer friends you have.
GordonGekko
Fire Starter
-2
Enterprise Account Executive
No
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
Exempt employee as in not eligible for OT? Which is fairly common for ICs?
That said, what kind of deduction? For what purpose? Like everyone else, I'm very curious about the details here.
braintank
Politicker
2
Enterprise Account Executive
Did you just get hired? Sounds like they're just trying to set up payroll amigo.
oldcloser
Arsonist
1
💀
This s far too simple an explanation. It’s also probably spot on.
braintank
Politicker
1
Enterprise Account Executive
It always is
GordonGekko
Fire Starter
-2
Enterprise Account Executive
No, this is indeed a far too simple explanation.
Revenue_Rambo
Politicker
2
Director, Revenue Enablement
This is the only type of exempt employee I’ve ever heard of. Definitely does not mean you are exempt from taxes.

Is the form they are asking to to sign a W4? If so you don’t really have a choice in signing.
GordonGekko
Fire Starter
-2
Enterprise Account Executive
I’m not sure everyone understands exempt vs non exempt employee status. No, not a W4. Thank you
AnchorPoint
Politicker
1
Business Coach
Fairly vague information...
Kosta_Konfucius
Politicker
0
Sales Rep
Did you just start your role?
GordonGekko
Fire Starter
0
Enterprise Account Executive
Been at company for nearly 2 years. Not a W4. Exempt employee meaning at will, salaried. HR is asking. Related to clawback but we have no clawback provisions in place.
Revenue_Rambo
Politicker
2
Director, Revenue Enablement
Thank you for clarifying. Sounds like they are trying to close a loop hole in their commission structure. Clawbacks are legal in the US, but typically have to be outlined in your comp plan.

They may force you to sign it or give you the boot.
Beans
Big Shot
0
Enterprise Account Executive
This is really odd, what's the event that caused this request?
AnchorPoint
Politicker
0
Business Coach
Deduction for what?
CRAG112
Valued Contributor
0
Account Executive
Do not sign anything.
Why would you willingly sign away your income?

They are asking because they know they cannot do this.

Please seek legal advice and counseling immediately.

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