California Court of Appeal

In a putative class action brought by a former sales representative, seeking civil penalties under the Labor Code Private Attorneys General Act of 2004 (PAGA), Lab. Code section 2698, for a violation of section 223, which prohibits the secret underpayment of wages, arising out of a compensation plan that included commission payments, which employer could recover, or charge back against future commissions, if certain conditions were not met, the trial court's grant of summary judgment in favor of defendant is affirmed where the commission payments at issue were advances, not wages, and the chargeback provision did not violate the Labor Code because defendant may legally advance commission payments to its retail sales representatives before completion of all conditions for payment, and charge back any excess advance over commissions earned against future advances should the conditions not be satisfied.

Appellate Information

• Decided 07/10/2012
• Published 07/10/2012

Judges

• ALDRICH

Court

• California Court of Appeal

Counsel