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1099 Commission Refunds: Poor Product?
I work as a 1099 contracted salesman for a custom/specialized sportswear company. The products can take 2–3 months to create and ship out. Recently, our products have been having some quality control issues to the point that customers are returning their custom apparel back to our company and commissions are being taken back. As my contract states, I am to ‘procure sales’ within my territory.
The only other part of my contact that says anything else related to this subject reads “Salesmen earn 10% commission. Commissions will be paid on sales. Commissions are paid on the 15th of the month following the order completion, invoice, and ship date. Lesser commissions may occasionally be paid on promotional, discounted, or discontinued items. In the event of non-payment of partial payment by customer, commissions that have been paid shall be adjusted to reflect the actual amount received by Our Company after deduction of any collection expense.”
Are they able to take away paid commissions due to the companies poor quality? I am doing what my contract says, but due to quality issues, I am losing money. Any advice or knowledge to shed?