Sales Employees Sue Macy’s Over Allegedly Unlawful Wage Deductions

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A proposed class action recently removed to California federal court claims Macy’s West Stores, Inc. makes illegal deductions from sales employees’ commissions.

The suit claims the potential wage violations stem from the department store’s allegedly unlawful “Price Adjustment” and “Even Exchange” chargeback policies. Under the “Price Adjustment” policy, the case explains, wages are deducted from sales employees’ commissions when a customer requests credit on an already purchased item due to the merchandise going on sale after the purchase date. Through this policy, Macy’s unfairly shifts the cost of doing business to its employees by requiring them to “subsidize the reduction in price” through wage deductions, the case alleges.

“Defendants’ decision to discount merchandise after the sale is a business decision totally beyond the control of the Sales Employees,” the lawsuit points out.

The “Even Exchange” policy, the suit goes on, allows Macy’s to deduct money from employees’ commissions when a customer returns an item and replaces it with “essentially the same item,” such as a shirt in a different size or color. The lawsuit notes that the store does not lose money on these exchanges yet requires that employees surrender portions of their commission wages anyway.