Clawbacks are supposed
Posted: Sun May 25, 2025 3:33 am
Compensation laws can vary from state to state and undergo frequent changes, so you must take every precaution to ensure that your clawback clause remains compliant with applicable regulations.
2. Establish straightforward and reasonable clawback parameters
Design clawback clauses with crystal-clear parameters and durations. Use specific and unambiguous language that explains what actions trigger a clawback, the timeframe in which a deal is subject to the afghanistan phone number list provision, and what earnings a sales rep will forfeit in the event of a clawback.
Remember: to be protective, not punitive. Reclaiming excessive amounts or imposing long clawback durations will only result in demotivation and distrust.
So, while more complex methods have their merits, the safest route is to keep your clawback clauses as simple as possible. Consider the example we included above: If the customer churns within four months, the rep returns the commission they earned. That’s easy to enforce and understand.
2. Establish straightforward and reasonable clawback parameters
Design clawback clauses with crystal-clear parameters and durations. Use specific and unambiguous language that explains what actions trigger a clawback, the timeframe in which a deal is subject to the afghanistan phone number list provision, and what earnings a sales rep will forfeit in the event of a clawback.
Remember: to be protective, not punitive. Reclaiming excessive amounts or imposing long clawback durations will only result in demotivation and distrust.
So, while more complex methods have their merits, the safest route is to keep your clawback clauses as simple as possible. Consider the example we included above: If the customer churns within four months, the rep returns the commission they earned. That’s easy to enforce and understand.