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In reply to the discussion: How is it legal to hire "commission only" sales people? [View all]Junkdrawer
(27,993 posts)4. According to this, federal minimum wage laws still apply...
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
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
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Indeed, if you have to come in and work a set number of hours and abide by a dress code
Zalatix
May 2012
#11
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
Yes, that happens a lot in the Insurance, Herbalife, Mary Kay, Primerica, etc industries
Zalatix
May 2012
#12
There are more positions and occupations exempt from minimum wage and OT laws
morningfog
May 2012
#10
Another 'fun' angle to this is many companies pay commission as 1099 wages
Ruby the Liberal
May 2012
#28