I am sorry if some other thread answers this already, but I gave up looking for it.

I work as a New Car Manager in California and am paid on total net gross. I am paid on the 25th of the next month for the previous month and take a $1000 draw on the 5th of every month. This month I am on target to earn a whole $450. Times are bad everywhere but in over 8 years it has never been like this.

Will I actually owe them $550?

Is there any type of minimum for managers on commission pay?

Thanks,
Michelle

May I ask where you actually sell cars? (It makes a difference). Not the name of the company, but do you sell on a car lot, or do you somehow sell cars out in the field? I am also going to include pointers to several fact sheets that I am going to suggest that you read before your follow up questions.

Outside Sales rules (http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17f_outsidesales.pdf)

Auto Dealer rules (inside sales) (http://www.dol.gov/esa/regs/compliance/whd/whdfs11.pdf)

We are a new car dealer. We sell on a lot.

Michelle

So did you read the Auto Dealer link DAW provided?

I did read that but it keeps talking about a base salary and we are 100% commission on Net Gross. I don't see where it talks about managers making commission and being expempt just those making a base salary. Am I missing something?

Michelle

It is not legal for an inside sales person to be paid 100% commission. That is something that is legal for outside sales people only. There are two legal possibilities.
- CA minimum wage is currently $8/hr. You could legally be paid $8/hr and under federal rules only there would be no legal requirement that a premium be paid on hours worked past 40 in the workweek. I actually have no idea if the federal Auto Dealer exception is somehow duplicated in CA daily OT laws. Maybe another responder knows, or maybe you could ask CA-DLSE directly.
- It is possible that one of the White Collar exceptions apply to you. If so, you would have to be paid at least $640/week in CA.

If you feel that you are legally underpaid, file a wage claim with CA-DLSE.
CA wage claims (http://www.dir.ca.gov/dlse/HowToFileWageClaim.htm)

As a New Car Mgr she is probably considered an exempt employee under the Executive exemption.

Total net gross is based on the dept total not her individual sales. So this would include other factors than sales (typical expenses of running the business)

If this is correct it is not really commissions but more of the monthly bonus.

In California:

50.6.3 What Constitutes “Commissions” In California . In order to be a commissioned
employee, the employee must be principally involved in selling a product or service and
the amount of compensation received as commission must be based on a percentage
of the sale price of the product or service. (Ramirez v. Yosem ite Water C o., Inc. (1999) 20
Cal.4th 785, and Keyes Motors v. DLSE, supra.)

It does not appear that the "net gross" would qualify as commission in this case. HRinMA is right on point.