Rules Regarding Draw System
Can a brokerage force you to pay back "draw" you have accumulated if you leave to another brokerage? 

If an employee's contract states they need to pay it back if they "stay in the industry" is said contract binding? 

Ontario, Canada for reference.
[{"id": "fh9c4m6", "text": "Can't speak specifically but they agreement should spell out what happens. That's what a draw is though: it's a loan against future commissions no different than any other loan.", "replies": [{"id": "fha2osq", "text": "What are the common clawbacks?\n\nWas never on a draw, but curious.", "replies": [{"id": "fhazk3e", "text": "I'm sure it varies state by state and document by document. Best I understand it works similar to an unsecured personal loan. Not an attorney and not a broker paying anyone a draw so not 100% sure.", "replies": [], "depth": 3}, {"id": "fhbh00u", "text": "10% total commission recieved after splits until paid back.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fhaja4l", "text": "You should just get to the point. Are contracts enforceable in Canada?", "replies": [{"id": "fhbgw9u", "text": "This I suppose. Wondering if it contradicts labour laws or if anyone has anecdotal evidence.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fhawzjy", "text": "I stayed within the same company and was forced to pay it back.", "replies": [{"id": "fhbh2el", "text": "Same. But curious if they can force you to pay if you leave to another brokerage with outstanding draw.", "replies": [{"id": "fhbis81", "text": "Believe so, especially if its in the contract", "replies": [], "depth": 3}, {"id": "fhemj2y", "text": "do you really want a reputation for ripping off your broker?  Ontario is a bigger city than I live in but that sounds like a good way to get a kinda crap reputation real quick", "replies": [{"id": "fhemyvn", "text": "A) it's not me in particular. But let's just say that the cost would be worth the reward both monetarily and the \"rep\" hit wouldn't be a huge issue. It's a smaller brokerage &amp; it doesnt necessarily set you up for success. Other brokerages know this. \n\nB) Ontario is a province. \n\nBut good point for sure.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ig3coo7", "text": "Meaning you switched roles within same company?", "replies": [], "depth": 2}], "depth": 1}]