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View Full Version : OT for commission salesperson Alabama


bamagirl
11-06-2006, 01:07 PM
We have a former employee who recieved a bi-weekly salary and a (large) monthly commission check. We paid him OT on his salary but since he has left he now says we owe him OT on his commissions also. From the DOL website it doesn't look to me like we do, since he is a commissioned salesperson for a retail store, but wanted to make sure I wasn't missing something.

ArmyRetCW3
11-06-2006, 02:21 PM
If you are a
(1) retail establishment
(2)and 50% of his weekly wages if from commissions
(3)and his weekly hourly rate is $7.72 an hour,
then he is exempt from the federal overtime laws

bamagirl
11-06-2006, 02:32 PM
That's what I thought, just wanted to make sure.
Thanks for your quick reply.

robb71
11-06-2006, 05:03 PM
That's what I thought, just wanted to make sure.
Thanks for your quick reply.

However if you paid him overtime in the past, you may have inadvertantly reclassed him as non-exempt. If this is the case, then he'd qualify for overtime.

Pattymd
11-07-2006, 05:54 AM
However if you paid him overtime in the past, you may have inadvertantly reclassed him as non-exempt. If this is the case, then he'd qualify for overtime.

robb71, I think you misunderstood the prior response. The OP was never exempt if he was inside sales. All ArmyRetCW3 said, which is correct, is that for nonexempt inside sales employees, the FLSA overtime requirement is waived if those conditions exist.

OP, WAS he inside sales and did you and he meet the requirements ArmyRetCW3 stated?

bamagirl
11-07-2006, 06:49 AM
Yes, all of those requirements were met.

Pattymd
11-07-2006, 10:59 AM
Then you paid overtime previously when you weren't required to by law. Doesn't mean he has any case to sue for it now.

bamagirl
11-07-2006, 11:27 AM
Thanks for the help. You would think when someone has been overpaid they would thank you and move on instead of wanting more. He is the type that will always think he deserved more. Oh well, he is someone else's problem now.
Thanks again.

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