D.girl
03-17-2007, 10:09 PM
Hello, everyone,
I really need some help! My dad has been working for a certain company for about a year and a half and he receives commission plus his base salary.
The employer just sent my dad a letter to let him know that from now on he is not going to be paid base salary anymore, it will be only the commission.
Is it legal for his employer to do this, without giving any notice?
Thanks
CompensationCounsel
03-18-2007, 05:10 PM
It sounds from your post like he received notice. Just to be sure, was the notice for time he would work in the future, or did it apply to weeks he had already worked?
As to the second half of your post, it is legal to have a "commission only" policy in Massachusetts.
Although most companies have a guaranteed minimum pay to insure that each employee earns at least minimum wage for his time or meets one of the overtime exemptions (if his duties qualify him for it), there are plenty of companies who set up 100% commission pay plans where employees have no problem earning the necessary minimums to avoid violating the minimum wage and overtime laws. But now we're getting into the specifics of the commission plan, which is a bit beyond the scope of your post.
Pattymd
03-19-2007, 04:30 AM
One question. Is your dad Outside Sales?
http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17f_outsidesales.htm
D.girl
03-19-2007, 05:09 PM
My dad work as a travel agent.
ScottB
03-19-2007, 05:11 PM
My dad work as a travel agent.
Inside sales. Minimum wage rules apply. Overtime rules might.
He can be paid on commission, but if he does not get a commission for whatever period of time that comes up to at least minimum wage for hours worked, then the employer needs to make up the difference.
D.girl
03-19-2007, 05:25 PM
I guess my question is, and I am sorry for not being clear enough, if the employer can change from traditional salary + comission to all commission only as they please, without discussing with the employee first.
You help is greatly appreciated.
CompensationCounsel
03-19-2007, 07:37 PM
The short answer is "yes", so long as the employer is not changing pay the employee has already earned and so long as there isn't an affirmative agreement with employee otherwise.
The rest of our posts have been discussing whether the new pay plan is proper.
