How does a Draw Pay work for Outside Sales employees in CA? What do we, as an employer, need to reimburse?

Question

We are thinking about making our Loan Officers from 1099 independent contractors to w-2 employees and use a Draw pay system to pay them. All I know about it, is that it's an advance payment until they earn their commission. Once they earn commission, we subtract what was advanced from their paycheck. How would we write their contracts?

Answer 1

You need to contact the California Department of Labor to get an accurate answer to this question. If you don't set up the employees' contracts correctly, it could end up costing you thousands of $$$.