Q: “The Department of Labor’s website says: ‘Employees of a retail or service establishment who are paid more than half their total earnings on a commission basis may be exempt from the overtime pay requirements of the FLSA.’ I understand that this exemption from overtime would apply to employers who are paying commission only for employees who paint cars and get paid a percentage of the sale for each car they paint. I further understand that they also must pay the employee at least one and one-half times the minimum wage and be able to prove they’ve done so by maintaining time records. Is there anything I have missed, or that I am misunderstanding?” – Cristy, North Carolina
Are we paying these commissioned employees properly, or are they owed overtime?
To continue reading this page, become an
HR Specialist Premium Plus member today!
HR Specialist Premium Plus member today!
Your subscription includes:
Ask the Attorney: Answers to your HR legal questions
Compliance Guidance: Access to 7,000 HR news articles, updated daily, sorted by state
State-by-State: Summaries of HR laws in all 50 states
Manager's Training Library: a treasure trove of printable training guides
Memos to Managers for simple staff training
The Hiring Toolkit: Job descriptions, interview questions & exemption tests for 200+ positions
Webinar of the Week: Train instantly with recent recordings
Sample Policies, Weekly Podcasts, Q&As and much, much more ...