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  • Commission Pay North Carolina

    Hello all,

    Could anyone give me the details on a 100% commission based pay situation? For example if they are based on commission doesn’t it still have to boil down to at least $7.25/hr. (minimum wage in NC) for hours worked, etc.?

    I am thinking of going that route instead of messing with any sort of salary and would like some input on it.

    For example they would be selling advertising space, if they sale an 1/2 page ad for $500 and their commission would be say 10% of each sale then they would get $50.

    I've seen people in the same type of business do mostly commission but they always seem to have some sort of weekly salary such as $200/week + 10% commission, etc.

  • #2
    Lets say that Bob sells widgits door-to-door. Bob literally goes physically from one customer to the next. Bob is Exempt from both minimum wage and overtime under both the federal FLSA and CA CLC laws under the Outside Sales exception.
    http://www.dol.gov/whd/regs/complian...tsidesales.htm

    Now this is a very narrow exception. The government calls "balls and strikes" very closely on this exception. If the employee does not follow ALL rules related to the exception, the exception cannot be used. A lot of very big employers with very expensive lawyers have crashed and burned trying to tap dance around the rules.

    Read the cite. That is federal rules only. CA rules are similar but not identical. If your employee fails the federal rules, they also fail the CA rules. You can call this employee "commission only" or "Bigfoot" or anything you want, but legally commission only applies to the Outside Sales exception only. Everyone else is mostly subject to the minimum wage rules.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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