PRACTICE AREAS

Commissions

Commissioned employees have the potential to be the highest paid employees in any work force. If one is paid according to one’s efforts, then there is opportunity for talented and dedicated employees to become very successful. But while there exists the possibility of great benefit, there is also the possibility of abuse.

Sometimes, an employer can take advantage of a well-motivated and productive employee. It is the responsibility of the employer to see that commissions are paid fairly and in a timely manner.

Many commissioned employees, especially those who work inside an office (“inside sales” as opposed to an “outside salesperson”) are entitled to receive at least minimum wage plus overtime pay. Those employees who spend more than 50% of their work time outside the office, are generally considered “outside” salespeople. While they would be exempt from minimum wage and overtime laws, they are still entitled to recover any and all business expenses, including expenses or mileage for use of their personal vehicles.

Inside salespeople who are paid commission, but are entitled to overtime, have all of the rights to meal periods and minimum wage that other employees are entitled to receive. All of the damages (unpaid minimum wage, overtime, interest, penalties and attorneys fees are recoverable). In many cases, these cases can be handled on a contingency basis.