New York's Highest Court Delivers a Win to Employers Paying Employees on a Commission Basis

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On June 10, 2008 the New York Court of Appeals issued a long awaited decision confirming that employers may lawfully charge expenses against employee commissions. The court?s ruling, in conjunction with the legislature?s October 2007 amendment of the commission salesperson provisions of the New York Labor Law, provides employers with a roadmap for how to permissibly structure commission-based compensation arrangements.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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