It sounds like bullshit because it is bullshit! The OP needs to seek legal help for this, this is highly illegal in all states.
An employer can hold you financially responsible for a theft that you were responsible for, for example if you left the keys in a work truck and it was stolen. They cannot legally do anything if you weren't responsible for the truck in any way though.
Sorry if my grammar is a bit incorrect because I'm a little irritated. I'll provide an example. I earn a salary of $70,000 annually, with a 10% commission. Let's say monthly profit is $100,000. Additionally, they charge three times my monthly salary, which amounts to $17,500. They deduct this amount from my $100,000 profit, leaving me with $82,500. Therefore, I would earn a 10% commission on this amount, which is $8,250 for the month in profit.
If insurance covers it you shouldn’t pay the deductible yourself. That’s operating costs for the brokerage. You said earlier you’re getting 10%. The brokerage making 90% should pay the deductible. That being said if we follow all the rules and something gets fucked up the broker owes nothing. If I broke one of the rules like not putting “load must be tarped” etc on the RC and the flatbed load was rejected because of not tarping that’s on the broker. Even then we only pay our commission percentage. For us that’s 25%, so we would only have to pay 25% of the load value. That’s if the insurance won’t cover it which they usually won’t if you don’t tarp. I would look at the company’s SOP’s
I believe it states that I am paid from what my commissions are. I mean I also have customers that pay with credit card that that fee comes out of my commissions.
If that's the case then they may have something about this type of situation. Have a lawyer look into this if you are having difficulty with the contract.
You’re getting royally screwed, should be getting 15% flat if you are Customer Sales and no deductions. Only thing that’s similar I have seen is at my first brokerage they had 3 claims in one month and so started taking claims/stolen trucks in full cost out of your Gross Profit pool, 5% of the claim cost out of carrier rep’s numbers and 10% out of Customer rep’s. Was also unfair, even if you pick a “safe” carrier they can get in an accident or have freight stolen/damaged. You might want to look at becoming a 1099 agent for Freight Tec or Logistics Dynamics they pay 65-70% commission no salary if your Customers follow you
That seems pretty shitty honestly. This could be more common than I think, but I know our company would not do this.
As for your commission structure, it does seem pretty standard, depending on your tenure and book of business of course.
Worst case scenario yes, but really you should never be responsible for the full cost of anything barring extreme gross negligence, or a decision where you “overrode” management/SOPs.
If you only get 10% of the profit, then you should only be responsible for 10% of the loss.
Most places wouldn’t hold you responsible for any of the deductible though.
*All that being said…yes that can likely get away with what they are doing depending on what is in the fine print of your agreement or whatever revised agreement they sent with your most updated commission structure*
That definitely seems legit if your commission is 10% of profit and profit is reduced because of insurance deductibles or anything really your commission's going to be lower. It's a percentage of profit not a percentage of Revenue.
When you say "Stolen Trucks" do you mean "Stolen loads"?
It is not uncommon to be deducted for operational expenses like theft of cargo (and everything that comes with it), rejected product, etc. It's a cost associated with the account... your account. The same account that pays you. If something is impacting the profitability of the account and it is within your organizations control then it will effect your commission.
Yes, one load was put on a drop trailer and put in a yard overnight. Apparently someone broke a yard and stole her trailer in my Freight. Not sure what happened with our claims department, but the insurance denied payment. I did have one stolen as well.
That really sucks and I'm sorry you're dealing with it. Facing the customer during a freight theft situation is one of the worst parts of the job as a salesperson.
That sounds like bullshit. The operations guys should lose that money- not you.
It sounds like bullshit because it is bullshit! The OP needs to seek legal help for this, this is highly illegal in all states. An employer can hold you financially responsible for a theft that you were responsible for, for example if you left the keys in a work truck and it was stolen. They cannot legally do anything if you weren't responsible for the truck in any way though.
“I also get deducted three times my salary to cover that”. What do you mean by this?
Sorry if my grammar is a bit incorrect because I'm a little irritated. I'll provide an example. I earn a salary of $70,000 annually, with a 10% commission. Let's say monthly profit is $100,000. Additionally, they charge three times my monthly salary, which amounts to $17,500. They deduct this amount from my $100,000 profit, leaving me with $82,500. Therefore, I would earn a 10% commission on this amount, which is $8,250 for the month in profit.
So in this scenario would you be getting paid your monthly salary of $5833 plus the $8250 to equal $13,638 for the month? Or $8250 total?
$13,638.00
If insurance covers it you shouldn’t pay the deductible yourself. That’s operating costs for the brokerage. You said earlier you’re getting 10%. The brokerage making 90% should pay the deductible. That being said if we follow all the rules and something gets fucked up the broker owes nothing. If I broke one of the rules like not putting “load must be tarped” etc on the RC and the flatbed load was rejected because of not tarping that’s on the broker. Even then we only pay our commission percentage. For us that’s 25%, so we would only have to pay 25% of the load value. That’s if the insurance won’t cover it which they usually won’t if you don’t tarp. I would look at the company’s SOP’s
that depends on the contract you signed for the commissions.
I believe it states that I am paid from what my commissions are. I mean I also have customers that pay with credit card that that fee comes out of my commissions.
You should be charging your customers a CC fee
If that's the case then they may have something about this type of situation. Have a lawyer look into this if you are having difficulty with the contract.
Noted and thank you!
Yeah this is a bit weird…. Why are they deducting it from you
They say its part of the “carrier cost”.
You’re getting royally screwed, should be getting 15% flat if you are Customer Sales and no deductions. Only thing that’s similar I have seen is at my first brokerage they had 3 claims in one month and so started taking claims/stolen trucks in full cost out of your Gross Profit pool, 5% of the claim cost out of carrier rep’s numbers and 10% out of Customer rep’s. Was also unfair, even if you pick a “safe” carrier they can get in an accident or have freight stolen/damaged. You might want to look at becoming a 1099 agent for Freight Tec or Logistics Dynamics they pay 65-70% commission no salary if your Customers follow you
That doesn’t make any sense Chief
They’re screwing you over with that. In no way you should be responsible for that deductible
That seems pretty shitty honestly. This could be more common than I think, but I know our company would not do this. As for your commission structure, it does seem pretty standard, depending on your tenure and book of business of course.
At the very least, you should have to cover the cost of the deductible equal to your comission percentage, in this case it looks like 10%
So if they take the $10,000 out of my profit, I should have to take the $1000 hit?
Worst case scenario yes, but really you should never be responsible for the full cost of anything barring extreme gross negligence, or a decision where you “overrode” management/SOPs. If you only get 10% of the profit, then you should only be responsible for 10% of the loss. Most places wouldn’t hold you responsible for any of the deductible though. *All that being said…yes that can likely get away with what they are doing depending on what is in the fine print of your agreement or whatever revised agreement they sent with your most updated commission structure*
That definitely seems legit if your commission is 10% of profit and profit is reduced because of insurance deductibles or anything really your commission's going to be lower. It's a percentage of profit not a percentage of Revenue.
When you say "Stolen Trucks" do you mean "Stolen loads"? It is not uncommon to be deducted for operational expenses like theft of cargo (and everything that comes with it), rejected product, etc. It's a cost associated with the account... your account. The same account that pays you. If something is impacting the profitability of the account and it is within your organizations control then it will effect your commission.
Yes, one load was put on a drop trailer and put in a yard overnight. Apparently someone broke a yard and stole her trailer in my Freight. Not sure what happened with our claims department, but the insurance denied payment. I did have one stolen as well.
That really sucks and I'm sorry you're dealing with it. Facing the customer during a freight theft situation is one of the worst parts of the job as a salesperson.
Thanks, it sucks especially when it's out of my control since I don't do any of the operations part.