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Old 06-17-2013, 11:48 PM
 
1 posts, read 1,537 times
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I have been unemployed for 3 months and just started receiving my UI benefits last month. It was a long and painful wait. Anyway, I am considering an opportunity to work as a commission only sales consultant for a construction company. It will take about some time to get trained and I do not expect to get more own leads for at least another month. Even after I get my own leads, who knows when solid commission checks will start coming in where I can confidently say I am no longer unemployed and making good money again. How should I report this to the EDD on the claims forms? I know EDD has been known to really punish people for any mistakes, knowingly or not. Any advice is very much appreciated.
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Old 06-19-2013, 10:39 AM
 
Location: in a galaxy far far away
19,222 posts, read 16,710,036 times
Reputation: 33352
Commission only? No. Never. It's disgraceful that companies do this sort of thing. They hire someone to be there, promote their company yet not pay them a single cent until they sell something.

I've always felt it's better to have a job than to be on UI but in this case, I'd say no. Remember the old saying ... A bird in the hand is worth two in the bush.
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Old 06-19-2013, 01:07 PM
 
Location: East Bay, San Francisco Bay Area
23,550 posts, read 24,057,818 times
Reputation: 23987
You should call the EDD about this.
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Old 06-19-2013, 01:18 PM
 
11,715 posts, read 40,461,182 times
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Don't "commission-only" jobs have to make up the difference between your commission and minimum wage if you fall below? Or are they calling you an independent contractor to skirt the law?
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Old 06-19-2013, 01:28 PM
 
9,891 posts, read 11,772,911 times
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Quote:
Commission only? No. Never. It's disgraceful that companies do this sort of thing. They hire someone to be there, promote their company yet not pay them a single cent until they sell something.
Good salesmen prefer a commission based job, over a salary based one. I spent my working life on commission, and I would have it no other way.

Example: Back in my early 20s after being discharged from the Navy, I started on commission jobs. Sometimes there was a draw mid month, and at the end of the month you were paid your commission less the draw. Never did I not earn much more on commission than the draw. Example: Selling furniture in a good quality furniture store. Earning in today's dollars $125,000 plus per year. Later working selling furniture in one of the best department stores in nation (one of top 10), earning $125,000 plus in today's dollars, while those on salary were earning $6 per hour in today's dollars. The commission men in T.V. Furniture, Appliances, were all earning about the same which was almost twice what the assistant manager of a major store was earning. From furniture I went in the corporate world and worked as high as Division Sales manager for everything west of the the Mississippi river except California and Hawaii.

In 1970 I went into investment real estate for the rest of my working life, and as a broker I had to pay my own office and business expenses, hire office help etc., and make a living all on commission. I ran a one man office, as I could make more money by myself than trying to manage salespeople. I specialized in real estate exchanges, and exchanged property all over the U.S. and as far away as Costa Rica and Belize.

Many transactions paid more commission than the median family annual income.

Companies hire people on commission, because it allows the salespersons to make a much above average income if they are any good. If they are not, they fail out fast. There is no middle ground. Commission is an incentive to attract the best people, people that would not take a normal salary to do the job. You are really working in partnership with the business owner.

If you are selling a decent product, work hard, you can make very top money on commission. I would never work any other way, and I knew many men and women over the years, that felt the same. I am not talking about going door to door selling vacuum cleaners, or cosmetics. I am talking about a decent product, with a decent potential clientele and a fair commission split.
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Old 06-19-2013, 01:44 PM
 
9,891 posts, read 11,772,911 times
Reputation: 22087
Quote:
Don't "commission-only" jobs have to make up the difference between your commission and minimum wage if you fall below? Or are they calling you an independent contractor to skirt the law?
The answer is No, it is straight commission. If you are not earning considerably above minimum wage, you should not be working as a salesman/saleswoman. If you are earning down below minimum wage on commission, they would be telling you to go work somewhere else. They cannot afford to have you working for them, if you are that poor of a salesperson. Anyone that wants the guarantee they will at least get the minimum wage, should never go into sales. They will never succeed in sales.

Good salespeople make good money. The poor ones wash out of the business, and the quicker the better.
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Old 06-19-2013, 02:09 PM
 
Location: Sierra Nevada Land, CA
9,455 posts, read 12,552,619 times
Reputation: 16453
Quote:
Originally Posted by mwawcca View Post
I have been unemployed for 3 months and just started receiving my UI benefits last month. It was a long and painful wait. Anyway, I am considering an opportunity to work as a commission only sales consultant for a construction company. It will take about some time to get trained and I do not expect to get more own leads for at least another month. Even after I get my own leads, who knows when solid commission checks will start coming in where I can confidently say I am no longer unemployed and making good money again. How should I report this to the EDD on the claims forms? I know EDD has been known to really punish people for any mistakes, knowingly or not. Any advice is very much appreciated.
I don't think the OP cares so much about the in and outs of commission v Salary.

He is looking for this sort of an answer: Just report what you are paid on the form. It will affect your UIB check, but it will also extend your benefit period. Call your local EDD for details.
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Old 06-19-2013, 05:28 PM
 
Location: Silicon Valley
18,813 posts, read 32,523,229 times
Reputation: 38576
Quote:
Originally Posted by Mr5150 View Post
I don't think the OP cares so much about the in and outs of commission v Salary.

He is looking for this sort of an answer: Just report what you are paid on the form. It will affect your UIB check, but it will also extend your benefit period. Call your local EDD for details.
I agree. You just fill out the form each week with your income. It's really easy to get back on the benefits, if they cut you off because of income for a few weeks or whatever.

By the way, I've screwed up on how I reported to the EDD and they didn't punish me at all. In fact they audited a former employer a couple years after i had left, and i was no longer on UI. They had overpaid me by around $125. It was my mistake in how I reported when I was paid as opposed to when I worked or something like that.

They just sent me a letter asking me pay to pay it back with no penalties. I wouldn't be afraid to call them up, be honest and ask them what to do.
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