AboutThomas R. Ballas Expertise I will take questions about EEOC complaints, ADA, FMLA and most Human Resource issues. I am an expert in the Railway Labor Act and collective bargaining agreements.
Experience I have 36 years experience in the rail industry, 16 as the lead company negotiator for all Section Six talks.
Education/Credentials BA in Psychology, PHR and SPHR Certifications.
Question I have a client who owns a salon and pays stylists only a 50% commission for each service they provide. When the stylists aren't doing hair, they won't do anything else such as cleaning, etc. Management is considering going to an hourly rate plus tips/commissions. Do they have to pay minimum wage? I know restaurants pay a lower hourly wage than minimum so I wanted to know the law regarding this.
In additiion, they have an apprentice who is paid 50% commission on each service she provides. The other stylists think this is unfair because she has only begun the apprenticeship and doesn't have any experience or expertise plus she is getting a free education. What do you think her pay should be, if anything? And are there any laws regarding this?
Thank you!
Answer Kandi:
It depends on what state you are in. Typically, yes they must be paid minimum wage, but without knowing what state you are in, I cannot say for sure.
No laws on how much commission a rookie must be paid, but logic says it should not be as much as the experienced stylists. I would start her at 30%, and move it up to the norm over a period of one year, in increments of 5%.
