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About Thomas 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.

 
   

You are here:  Experts > Business > Corporate Law > Employment Law > Commission pay without possibility of sales

Employment Law - Commission pay without possibility of sales


Expert: Thomas R. Ballas - 7/8/2009

Question
I am having a hard time finding laws concerning employers rights and regulations. Specifically, I work at a department store, I am a commissioned sales associate, and I am required to stay after hours (up to two) after the store closes.  While I am on commission, I make a base rate that I must equal in sales, or I will owe the company.  I am trying to find information on the laws concerning the amount of time the company can keep me after the store closes, and I cannot equal the hourly goal I am required to fulfill in order not to owe the company on my next check. There has to be regulations for this, it seems that legally this must violate some sort of law! If I cannot make money, then I am being paid from my base rate, which I then need to make up my following shift. (By the way, I live in Michigan). So can they force me to work off the sales floor while paying me a base rate that will go against my possible commission? Thank you!

Answer
Amanda:

You must be paid at least minimum wage for the time worked.  If your commissions equal to the amount of money you would earn if you worked by the hour, (at minimum wage), then the minimum wage law is met.

For example, if you work 40 hours per week, and earn $400 in commissions for the week, then you have exceeded the state minimum wage rate of 7.25 per hour.

So, if your supervisor wants you to work after the store closes, those hours count for the total worked for the week.  Excess of 40 hours per week is considered overtime.

Hope this helps.

Tom Ballas

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