If an employee performs a service but we were unable to collect payment, do we have to pay commission?
Asked by desertpoetess
Typically, an employee is paid a commission plus a service charge. On occasion, a client walks out without paying or their credit card declines after they've left. We make every attempt to collect while the customer is present or charge their room later, but sometimes we're left holding the bag. The employees feel that they performed the service and should be paid. Is anyone familiar with Nevada law? I've done research but can't find an answer!

Best Answer:
Does the contract with the employee state that commission plus a service charges are payable only if the customer pays Or whether the contract stipulates payment of commission plus a service charge irrespective of customer payment ? The answer to your question is based on the above questions !!

I presume we're talking waitstaff here. but i guess it wouldnt matter. Accounts receiveable are always held separately, you can even borrow against them. and you can write down the bad debt. but you have to pay the commissions as part of your overhead. the employment commission will have a field day if they find out. And they dont care if you run a hotel or a Rabbit Ranch. good luck
Answered by drwer2

Law or no law, don't you think it's just morally right to pay the commission? Pay the commission mate, it's much better having happy and loyal employees than disgruntled one's who think you ripped them off. If the same employee always has the same problem, then it may be time took look a little deeper into why that is, but if it happens every now and again, pay the commission. :)
Answered by Richard K