A handful of former Nordstrom employees are suing the department store for allegedly stealing their commission.
The plaintiffs are upset that Nordstrom deducted commissions on returned items from their paychecks.
I worked at Nordstrom in California – where the lawsuit is taking place – the summer after my freshman year of college. Yesterday, I got a letter in the mail asking me to sign on to the suit.
When you work in commission-based retail, you make money when you sell product and lose it when it gets returned. So if I sell you a $1200 Herve dress, but you bring it back next week, I make nothing, which is totally fair.
The rub is that Nordstrom has an extremely lenient return policy. Basically, they take anything back. This means that if you buy that Herve dress and I get my commission in May and then you wear it to every single party of the summer and return it come September with holes and stains and whatever, Nordstrom takes it back no questions asked. And the money then comes out of my paycheck five months after I sold it to you – which sucks, but isn’t surprising if you’ve sat through the customer service training videos you’re required to watch before working there.
Just a little something to keep in mind next time you’re itching to return something you’ve already worn.
Tags: Herve Leger, Nordstrom






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That does seem unfair to make employees pay back their commission, but I guess if the store didn’t have that policy, you could get a friend to regularly buy thousands of dollars of stuff from you and return it all the next day.
Yeah I’ve heard about people regularly abusing the Nordstrom return policy. It sucks that Nordstrom will probably tighten the reigns because a few people have chosen to ruin it for us all. I think a lot of us have bought something, worn it before deciding it was all wrong and returning it quickly. . . but there’s a vast difference between that and the person that keeps something for AGES, wears it multiple times and returns it. Shame on them. I understand both sides of this argument. One does make a valid point though . . . surely if Nordstrom didn’t take the commissions back, some person on the other side would abuse the commission system.
what happens if you sell something, take in the commission, leave the company, and the item is later returned? are they going to track you down at your next job and make you repay the commission?
I worked at Nordstrom for several years until very recently and received the same letter in the mail last week. To take back earned commission on a recently returned, unused item is the proper thing to do. The problem lied in the fact that customers would wear/use an item for several years and then decide to return it, for cash. There were also problems with employees taking returns on non-Nordstrom products that some clever customer had paired with a Nordstrom tag or receipt. I think they just need to find some sort of in between.
Macy’s has the same policy (I worked at a Prescriptives counter in college), but they track people who constantly return things irregardless of the items condition. People who abuse the return policy get their Macy’s crads revoked and if they continue using another card used to be banned from the store. Not sure if this is still the case.
FYI – every dept. store has extensive security and will have video.
Is this something that is normal that I have never known about? I would never, ever, EVER buy something, wear it, and return it. It just seems so dishonest! The most I do is buy something, try it on at home, and if I’m not feeling it return it.
@Guest #5: Sorry (and I’m sure I will get tons of sh*t for this), but irregardless is NOT a word.
I’ve worked commission sales and can tell you that, that sucks. Nordstrom needs to tighten up on their return policy.
I agree with #3, it seems like there is no way to keep this policy from either being too broadly or too narrowly applied. Employees would just have their friends come in and buy tons of stuff, only to return it once they quit… Just sayin’
I work in retail, and we have to accept returns, no matter what condition they are in. In April I accepted two bras that a woman had been wearing since July, and the wires finally gave out.
Honestly people, if you wore it and washed it once, and then you were like “Oops, this totally isn’t me,” then just suck it up and accept that you made a bad purchase. Don’t return that stuff, it’s so rude and awful.
I think the ultimate way to avoid this is to just make good sales. In retail environments like this, the point is to build an actual client base; you make all your sales off of repeat customers who come directly to you because you know what they like and put things aside for them in their size. If you’re relying solely on foot traffic, repeat returns are inevitable. Obviously you can’t avoid some returns, but if you’re a good salesperson (and this is what a Nordstrom employee is), then this shouldn’t really be an issue because your customers are buying in complete confidence.
I generally go by the rule of thumb, if it’s still in like new condition, it’s all fair game. I once saw a silk dress in Anthropologie that someone had clearly thrown it into their wash machine and it looked like crap (dry clean only probably) yet, they were still trying to sell it. Are you kidding? They shouldn’t have let that person return that dress. But, I once bought a cashmere sweater that smelled strongly of someone’s perfume (clearly it had been worn) but that didn’t stop me from purchasing it. It was a great price and the last one left! But maybe that’s just me. . .
PS – 11 if the bras at your store give out in less than a year, then YES, you should give her her money back. Clearly they were poorly made.
Wow! I did not know this about retail. It sounds unfair to the employee, especially if its very easy for the customers to return clothing that has been worn more than once.
As a shopper, if I’m paying full price, I would like to think that my purchases are ‘new’ and haven’t been worn before. I think that information should be disclosed to the shopper especially if they’re looking for an investment piece that can quickly fall apart due to someone else’s negligence . In turn this will cause them to return the garment again themselves, which continues this cycle for the poor employees.
Thanks for the article Fashionista. It was really informative about the world of retail that I was not aware of.
Commission just promises you better service. If you buy something and decide to return it, hopefully they can help you find something else to replace your return. For those abusing the return policy: what comes around goes around! Karma is a b***h.
Just FYI, Nordstrom is not supposed to put worn or altered clothing back in the store. However, they might send it to their Rack store. Suddenly you don’t mind the fact that those designer pants have been worn a couple times (and paying much less)!
Yes Nordstrom is a bit ridiculous when it comes to returns – however, they recently put into effect that if an item an employee sold more than a year ago after the purchase date has been returned, they are not hit with the return. I know it’s not much, but it does help.
If you were hired to sell clothes and you do then you did your job. You earned your commission. If the customer wants to return items for whatever reason commissions shouldn’t be taken back coz it’s not the sales person fault. This has pros and cons I know.
I used to work on commission at a UK department store, and there was no way they would deduct returns from our wages!
The argument about getting a friend to spend and return goods is null because a level of trust must exist between an employer and employee.
In my opinion – you did the work selling the item, you get rewarded.
Also, what if the customer doesn’t have a receipt, how does the store know which of the sales assistants put it through the till?
What about faulty returns?
I say good for them for suing!
Its horrible that a few annoying individuals ruin it! I’m a fan of nordstrom’s return policy as a customer who would never wear something then return it, but I never thought about what it does to one’s commissions. They should have a better screening process for returns.
thebeautifulfool.blogspot.com
Its horrible that a few annoying individuals ruin it! I’m a fan of nordstrom’s return policy as a customer who would never wear something then return it, but I never thought about what it does to one’s commissions. They should have a better screening process for returns.
thebeautifulfool.blogspot.com
But…that’s how retail commission pay works…
How much commission do employees get off purchases at Nordstrom?
i imagine it’d feel weird to walk back up to the employee and give them a messed-up designer garment and tell them you want back what you paid…ugh…
but you looked lovley on Altamira, Britt
http://altamiranyc.blogspot.com/2009/05/fashionistacoms-associate-editor-britt.html
When I worked at Nordstrom, the level of commission varied depending on the department. In lingerie, for example, it was much higher due to the fact that you had to sell so much more product to equal a St. John suit or Chloe handbag.
I always thought their system was very fair and trust me – the people who brought in those WAY worn out garments with the holes definitely felt the burning eyes of the employees boring into their souls, even as we smiled through the transaction ;)
Yes, this is true. But it also applies when you don’t wear an item and just make a return. That’s the price you pay to work in retail. Get over it.
Boo hoo. Go work at Macy’s if you don’t like Nordstrom’s return policy.
As a customer I love Nordstrom’s return policy although I’ve never returned anything there I know friends who have. I had a friend come return shoes she wore for two years and the heel broke and she took them back with no recipt and not box! I was ashamed and amazed all at once. But if employees know this then they should not take the job.
I do hope this forces Nordstrom to at least consider letting employees keep their commission if the item is returned 60 + days after purchase. Seriously people wearing stuff and taking it back is just shady and employees shouldn’t have to suffer for it.
This is absolutely intense.
In Australia our laws state clearly that customers are not entitled to refunds for change of mind.
We had some large department stores who, out of goodwill, would still offer very generous returns policies but that definitely did not include years old/worn product!
More recently most of these department chains no longer offer such generous returns policies. Many still offer things like refunds for change of mind (which they are not obligated to do by law) but many have put other conditions on their policies such as the window of time a customer has in which to return an item.
It is absolutely shocking to think stores would have such laxe policies. Who would take back a worn garment? Or a piece years old? It’s absolutely illogical especially for the fashion industry.
Obviously I am unfamiliar with US law in regards to acceptable trading but it seems ridiculous to me – especially when a staff member ends up being the one in the most inconvienient situation.
Other than putting restrictions on returns policies perhaps these stores could stop offering comission and in exchange simply pay their staff higher wages? When a staff member demonstrates excellent sales they could just get a permanent wage increase.
I curently work at Nordstrom, and whenever I tell my friends how I get paid full comission, they freak out especially when I tell them returns get taken out of our check. Honestly, for some strange reason the return policy works out, out of all the customers I work with, very few return items. The no questions asked rule also is not true, I know people bring back itmes, but if the return can be denied.
i think the nordstrom return policy actually increases sales in the long term, which in turn increases commission – even after taking into account the cost of returns. i believe many people shop there because of the return policy and most of those people do not return merchandise. if the employees don’t like the return policy, they should work somewhere else. i agree with the statements above – a good salesperson will sell merchandise the client wants to keep.
I worked for Anthropologie for about a year and you would not believe the type of things people will return when they know that it will be taken back as is. We once took back a pair of panties that had been worn AND had a cigarette burn in them… How could you return that and not feel utterly mortified? That didn’t go back on the floor (HA) but most everything does, including things that have been washed. But they are usually greatly discounted!
Anyway, I feel for the Nordstrom employees as it seems slightly unfair to revoke commission after an extended period of time. Plus, according to number 27 they are not required to take something back if it is ruined. Sounds like some of the employees are afraid of refusing the client.
Never heard of Nordstrom but Ms. Aboutaleb does look cute in that pic, thanks #21.
I work retail, and it horrifies and disgusts me when people try to return used merchandise. Fortunately, our store has a fairly simple policy: unwashed, unworn, 30 days, no problems. There are fair exceptions, at management’s discretion: If it’s a merchandise defect or the person frankly tells me something like “I wore it once, the sleeves drove me nuts” or whatever, I’ll take it back and be perfectly polite about it. You want happy customers, after all.
On the other hand, I’ve had a guy try to return a shirt that his cat had urinated on. That experience – pulling the item from the bag, opening it up on the register and being faced with the large yellow blotch – was pretty traumatizing. I also get TONS of “unworn” and still tagged but atrociously smoky, smelly, scrunched-up garments. This pisses me off, especially if I can’t come up with a reason to deny the return without blatantly saying “hey, it stinks.”
Also, I get a lot of *ahem* LARGE people who buy extra-small clothing, stretch it out and/or pop the buttons/rip the seams, and then return because “I just didn’t like it.” You didn’t like it BECAUSE YOU ARE NOT AN EXTRA SMALL THANKYOUVERYMUCH.
Rant over.
Last Fall I tried to return a pair of BP shoes (Nordstrom’s house brand) because I wore them once, and the leather on the heal tore. They told me that normal wear and tear was to be expected and would not take the item back. I know previously Nordstom’s policy was to take everything back, even if the product didn’t come from their store, so it looks like they tightened their return policy.
By the way, Nordstrom just charges the item back to the manufacturer and they don’t take any loss for returned items. This policy is ultimately unfair to the manufacturer who is sent back a dirty, worn out piece of clothing!
Uh, hello.
I was wondering, can Nordstrom ask you not to shop there or bring you to court just because yo ‘abuse the policy’?
Because, i like always return things there that i buy. I return things there A LOT. But, ONLY because i have this phobia about dressing rooms, which is kinda retarded, but i’m kinda freaked out by them. anyways, my friend told me that i was ‘abusing the policy’ and that they may kick me out for good, or send me to court or something. now, i’m really scared. because i actually like their stores and i do buy and keep a lot of their stuff. sometimes, i’ll return it in a week, or a month or two, because of timing. do you think that i could go to court or get asked to leave?
I have a little insight since i use to work in the security dept for Nordstroms. They will not sue you for “abusing” the return policy. They may send you a letter telling you are banned from the store. BUT it takes a lot to be banned. Even so, i had a few people banned from the store that still shop there but they are watched. You would need to have a pattern of doing something frauduant. Like stealing stuff and returning it for cash. Returning non Nordstrom items there.
Do you know how to check on whats going on with the lawsuit?
Do you happen to know if this case was settled, because I to received information. However I have heard nothing back since I mailed in the form they sent me.
I'm also waiting to figure out what happened with this since having sent in the form. Hence finding this site, but I can find little other information.