Commissioned employees are covered
under the FLSA if they meet certain requirements. However, employers fail to
pay overtime on many occasions.
- If you are made to wait until you are needed
without the permission to leave
- If you are forced to pay for things out of your
own pocket. Some examples include;
or merchandise shortages,
necessary for work.
If you are paid a salary but your job duties do
not meet all the requirements specified by the regulations to be considered as
exempt from overtime pay.
If a retail or service employer elects
to use the overtime exemption for commissioned employees, three conditions must
The employee must be employed by a retail or
- The employee’s regular rate of pay must exceed
one and one-half times the applicable minimum wage for every hour worked in a
workweek in which overtime hours are worked; and,
- More than half the employee's total earnings
must consist of commissions.
Unless all three conditions are met, the FLSA exemption is
not applicable, and overtime pay must be paid for all hours worked over 40 in a
workweek at time and one-half the regular rate of pay.