Do I pay an employee commission for a dog they injured?

Hello hello and welcome to Greedy Bitch, a podcast where groomers stop apologizing for charging their worth.  I’m your host River Lee, founder of the Savvy Groomer.

Today's episode is sponsored by the Pay Masterclass, a 6-module masterclass where we teach you all about paying your employees legally. 

Paying 50% is bull shit.  We here at the Savvy Groomer have cracked the code of paying employees a liveable wage they’re happy with and creating sustainable profit for pet grooming business owners.  Introducing the Pay Masterclass, a 6-module exploration on how to legally pay W2 employees, specifically designed for the pet grooming business.  Busting myths while teaching you the skills and winning formulas you need to create a pay structure that actually works. 

Let’s talk about today's topic:

Do I pay an employee the commission for a dog they injured?

River: Today we have a special guest joining us, attorney Jim Atchison! So, this is a situation that many pet grooming business owners may find themselves in at some point. Can you shed some light on whether an employee should be paid commission for a dog they injured?

Jim: Absolutely. This is a question that often comes up in pet grooming businesses. The short answer is that, in most cases, an employee is entitled to their commission, even if they accidentally injure a dog.

River: That’s interesting. Could you explain why that is the case?

Jim: Certainly. When it comes to commission payments, they are typically based on the revenue generated by the employee’s work, rather than the quality of the work. If the injured dog was part of a service that contributed to the employee’s commission, they would generally be entitled to receive that commission.

River: So, it’s based on the revenue generated rather than the outcome of the service. But are there any exceptions to this rule?

Jim: Yes, there can be exceptions. It’s important for employers to have proper legal coverage and a well-drafted contract with their employees. If the employment contract specifically outlines the circumstances under which commission payments may be withheld or reduced, then the employer may have grounds to withhold or reduce the commission in case of an incident like this.

River: That makes sense. So, it really comes down to the contract between the employer and the employee. What if there is no specific clause addressing the situation in the contract?

Jim: If the employment contract does not address the specific circumstances of a dog-related incident and the impact on commission payments, the default position would likely favor the employee. In the absence of a contractual provision, the employer may be obligated to pay the commission as it is a reflection of the revenue generated by the employee’s efforts.

River: That’s good to know. However, I imagine it’s always best to consult with an attorney or legal professional in such situations.

Jim: Absolutely. Whenever you encounter legal questions or concerns regarding your business, it’s important to seek advice from a qualified attorney or legal professional. They can provide guidance based on the specific circumstances and applicable laws in your jurisdiction.

River: What if the grooming salon owner does not charge for the service?

Jim: Even if the grooming salon owner does not charge for the service, the employee is still entitled to the commission they would have received for the service. 

River: That is sound advice. It’s always better to be safe than sorry. Before we wrap up, do you have any final thoughts on this topic?

Jim: Yes, it’s important for business owners to proactively address situations like this by including relevant clauses in their employment contracts. By clearly defining the circumstances under which commission payments may be affected, employers can minimize potential disputes and ensure a fair resolution for all parties involved.

River: Excellent point. Thank you so much for joining us and sharing your expertise.

Jim: It was my pleasure. Thank you for having me.

If you guys are interested in learning more about the Pay Masterclass, be sure to visit me at savvygroomer.com/pgmc. This is a 6-module masterclass where we teach you how to pay your employees.

Thank you all so much for listening to this podcast, Do I pay an employee the commission for a dog they injured?. Be sure to visit me at SavvyGroomer.com to see my current opportunities to work with me in growing your pet grooming business plus more free resources for you to learn. See you in our community on Facebook - Savvy Pet Professionals! As always, Happy Grooming