Hello. I am an cellular store employer in Florida. My employees and managers make a great deal of their pay in commission.

For Assistant Mgrs: base pay is $400 per week (or higher) plus commissions. None of these people makes less than $550 per week ever, and average about $650-$700. I schedule them about 49 hours per week, so with 2 15 minute breaks (not guaranteed, but usually happen) and 1 30 minute break, they work around 46-47 hours per week. I have one gentleman who feels that he is owed overtime. I won't go into my personal feelings of paying completely for their health-care, nor that I pay above industry standards, but I am wondering if I have to change my pay scale completely so that the BASE part of their pay covers the $455 minimum for exempt employees. Can this commission money go into the $455 calculation? I hope so. If not, I get the pleasure of completely changing my business model. Not a fun prospect. I want to do what is legal and right, take care of my people, and make sure my small company is profitable.

For Sales Staff: From what I have read, they are not exempt, so I can no longer schedule them 45 hours per week and pay a salary of $350. I am not sure though, as they all make over $550 per week, averaging in the neighborhood of $625 per week. Do I need to convert them all to hourly employees? Any help or direction you can provide would be greatly appreciated!
Tom

Can this commission money go into the $455 calculation?

Only if the commission is guaranteed. If they do not have a guaranteed minimum of $455 every single week they do not meet the exempt status. If the commission is not guaranteed and they might not make the $455 some weeks, then by definition they are non-exempt.


Do I need to convert them all to hourly employees?

Is it safe to assume that we are talking about inside sales?

Yes, all this is inside sales. It would appear that giving a $455 guarantee is easy for us. I can do that without worries.

As to the sales associates, then it would appear they need to go to Hourly if the commissions also are not counted

That's correct. As cbg said, the weekly salary of $455 must be guaranteed for the inside sales employee to be exempt from overtime pay.

I appreciate your insight and quick response.

Thank you so much

Tom