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Junkdrawer

(27,993 posts)
4. According to this, federal minimum wage laws still apply...
Thu May 24, 2012, 06:16 AM
May 2012


Minimum Wage
Employers must pay commission-only employees at least the minimum wage.

Overtime
Employees who are paid commission-only are entitled to receive time and a half in overtime pay for hours worked beyond a 40-hour workweek. The Fair Labor Standards Act provides an exemption for employers who are considered to be retail and service establishments. For an employer to fall into this category, 75 percent of the annual dollar volume of the sales of goods or services must come from sales that are not resales. Also, the sales of goods or services (or both) must be recognized as retail sales in the particular industry.

Exemptions
Certain exemptions excuse employers from paying their commissioned employees for overtime. Employers must meet three stipulations to be exempt: the employer must be a retail or service establishment, the employee rate of pay must be more than one and one-half times the applicable minimum wage for every hour worked in a workweek, and more than half of the employee's total earnings during a specified time period must be from commission. Unless all three stipulations are met, the employer can't be exempt from the overtime regulation.


http://www.ehow.com/list_6857355_labor-regarding-commission-only-jobs.html
I was not aware of that. I don't know how it is legal ejpoeta May 2012 #1
Difficult to comment on dipsydoodle May 2012 #2
Almost all dept stores are commission only RockaFowler May 2012 #3
Its the best incentive to succeed. dipsydoodle May 2012 #8
According to this, federal minimum wage laws still apply... Junkdrawer May 2012 #4
Indeed, if you have to come in and work a set number of hours and abide by a dress code Zalatix May 2012 #11
Now, try getting it enforced. n/t Egalitarian Thug May 2012 #26
When I was working, I was getting paid by commission sakabatou May 2012 #5
The concept preys upon the Horatio Alger myth: "If you work hard enough you can succeed at anything" baldguy May 2012 #6
Hate to sound like a rude person but blame the Reagan era. It is in the 80s when people lookingfortruth May 2012 #7
The No Job Jobs Of The 21st Century TheMastersNemesis May 2012 #16
Commission only, well predates the 80s, it predates my lifetime. braddy May 2012 #21
Better Than "Independent Contractors" KharmaTrain May 2012 #9
Yes, that happens a lot in the Insurance, Herbalife, Mary Kay, Primerica, etc industries Zalatix May 2012 #12
Independent Contractor always worked for me, but only if it was real braddy May 2012 #22
There are more positions and occupations exempt from minimum wage and OT laws morningfog May 2012 #10
Many sales jobs are really tough KurtNYC May 2012 #13
Worst job of my life IDemo May 2012 #14
if you work a "commission only" gig melm00se May 2012 #15
Thanks. That actually sounds pretty reasonable, and fair (nt) Nye Bevan May 2012 #24
As a former commisions salesperson at Sears, this is how it works DotGone May 2012 #27
That was my problem with Sears, too RockaFowler May 2012 #30
I know one thing. Springslips May 2012 #17
Yes it is legal guardian May 2012 #18
There's a downside for the consumer... -..__... May 2012 #19
I was briefly in retail sales in the mid 70's rustydog May 2012 #20
Worked in sales most of my life. xchrom May 2012 #23
When I was a young man and working musician back in the mid 1970s aint_no_life_nowhere May 2012 #25
It is also legal to make people pay to work someplace. Ruby the Liberal May 2012 #29
Another 'fun' angle to this is many companies pay commission as 1099 wages Ruby the Liberal May 2012 #28
Been there, too Digit May 2012 #34
Simple answer - It's legal because it's not illegal slackmaster May 2012 #31
it's the only way to go datasuspect May 2012 #32
I met a commission only person Capt. Obvious May 2012 #33
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