This loan is really advanced %26quot;salary%26quot;. The company does not give salaries but employees depend on commissions. The employer extends advanced salary to all employees. Once they earn commission, the advanced salary will be deducted from this commission earned. The employee has since left the company and will duly pay any outstanding amount owed. However, the employer is now demanding repayment including interest which was never stated in the contract.
Employer charging interest on loan. Is that legal? Part 2?
Definitely check with an attorney, because I think it is illegal for anyone to charge interest on a loan unless they are specifically licensed to do so. I could be wrong but I think its called loan sharking if they do so. A rather serious federal offense.
Employer charging interest on loan. Is that legal? Part 2?
Ask them to show you where you agreed to pay interest?
Maybe they just though that it was in the contract. Or maybe it%26#039;s in there but you didn%26#039;t see it. So ask. When they see that you have no legal obligation to do so, then let them know that you aren%26#039;t going to out of the goodness of your heart. If they deduct it anyway and it%26#039;s more than $200 I%26#039;d go to small claims court with my contract and evidence that they deducted from my wages.
Best of luck,
Employer charging interest on loan. Is that legal? Part 2?
doesn%26#039;t sound legal to me but I would check with your local labor board on this
Employer charging interest on loan. Is that legal? Part 2?
I would think the reason the employer is charging interest is because the employee left the company and still owes money to the business. I would check with an attorney to see what the law says.
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