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emmette
04-14-2008, 08:18 AM
I work in a salvage yard and am paid on commision.I have not been able to verify if the fair labor standards act of 1938,as amended applies to me.Can anyone answer this?

cbg
04-14-2008, 08:27 AM
Not based on the scant information you have provided, we can't.

How about a little information? :confused:

Pattymd
04-14-2008, 08:57 AM
First, tell us about the company. Does it gross over $500K in annual revenue OR does it engage in interstate commerce? Those are the requirements for an employer to be subject to the FLSA.

emmette
04-14-2008, 09:30 AM
I work at anauto salvage yard. we ship interstate and some international orders. The company grosses over $500k a year

Pattymd
04-14-2008, 09:44 AM
OK, then it would be subject to the FLSA.

Now, tell us what you do and how your pay is calculated.

emmette
04-14-2008, 10:05 AM
assiant manager,counter sales,driver,pulling parts.they have not been able to give us a clear explanation on just how they calculate our pay.it is based on net sales.

DAW
04-14-2008, 10:23 AM
I am going to assume that you are legally an employee (taxes withheld on check, W2 at year end). If not, say something.
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You are either Exempt from overtime or you are not. Your workload is mostly blue collar, which means mostly Non-Exempt. The one exception that maybe your employer could try using is the Executive exception (see below). The problem is that is blown by paying you on commission only.
http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17b_executive.htm

You work inside so the Outside Sales exception is almost certainly off the table. Remove that, and paying you "commission only" gets very problematic legally.
http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17f_outsidesales.htm
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What is left is paying you at least minimum wage (MW) for hours worked and overtime (OT) for hours worked past 40 in the workweek (federal) and also CO has a hours past 12 in the day rule. CO-MW is currently $7.02/hr.

The problem with paying anyone who is under the "normal" rules on a commission basis is that the normal MW/OT rules still apply, which means a two-step calcuation, one for commission, one for MW/OT and then pay the greater amount. No one here can explain the commission structure but it is very easy for you to keep track of actual hours worked and do the other calculation.

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There is also a small chance that you qualify for the Retail and Service Establishment exception. If true, then you would have to be paid at least MW for all hours worked up front, and then a later commission at least equal to the previous MW calculation. This remove federal OT from the table (no idea about CO daily OT), but at the cost of making all hours worked due at least twice MW (eventually).
http://www.dol.gov/esa/regs/compliance/whd/whdfs20.htm

emmette
04-14-2008, 11:32 AM
thanks for the replies on my questions. The state and federal labor boards could not answer the flsa answer.emmette.

Pattymd
04-14-2008, 12:41 PM
the state and federal labor boards could not answer the flsa answer.emmette.

You've GOT to be kidding. :eek:

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