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 home based business, and I am looking to expand by hiring a salesperson. Up until this point the money the business makes has been my income - I do not pay myself a salary or separate tax returns, etc.; while I have been told there would be benefits to doing so I simply have not been able to afford a consultant to help set it up. (And I think at is beside the point, not sure if relevant so I included it just in case.)
However I am looking to hire someone to expand my business, a sales person. I do not think I can afford to offer a regular salary to start, and I definitely cannot afford to offer benefits. I am hoping it will be legal to hire someone as a commission only sales person. Is this legal? Do I have to pay minimum wage? Do I have to offer benefits if they work 'full-time'?
I (and the business) reside in Colorado, if that is applicable to the situation.
Thank you!
Answer Ken:
It is certainly legal to have a commission only sales person. I would engage in a consulting agreement with the person, insuring he understands he is a consultant, paid via commissions, with not taxes withheld, and no benefits.
You can find a sample consulting agreement on the net that you can use as a model. If the person only sells, and you do not work him at the business office, to answer phones for you, etc. then minimum wage is not an issue.
