I am three months into employement with a company that has paid me a recoverable draw payment during my ramp period. It has not turned out to be a good company. How do companys usually go about collecting the recoverable draw if someone chooses to leave? Can they hold my regular pay for this?

Recoverable draw payment refers to a draw that can be recovered or retrieved by an employer regardless of employment status of the individual who received the draw, the recoverable amount is equal to any draw paid to the individual that exceeds commissions earned, or the unearned amount is carried forward to the next performance period.

Think of it as commissions paid in advance. If the actual commissions earned during the time period exceed the draw amount, the salesperson is paid the difference at some later date. However, if the actual commissions earned during the time period do not equal or exceed the draw amount, the salesperson owes the company the difference. Any commissions in excess of draw that are earned in future time periods will first be applied to liquidate any negative balance in the salesperson's draw account before commission payments are made to the salesperson. Therefore, if you decide to stop working for them without their knowledge that would be an illegal act. If they can access to the account, I think they can because they created it in the first place.

Have you browsed through the information in LawInfo's Free Legal Resource Center to learn more about your issue yet? See: http://www.lawinfo.com/consumer.html and http://resources.lawinfo.com/en/index.html. You can certainly try to speak to a lawyer to determine what legal options may be available. In the meantime, you may be able to learn more on your own. Search the "Free Legal Resources" tab, or browse the Consumer Resources. Good luck.