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  • Mr. Ford
    started a topic Change in job title, cut in pay

    Change in job title, cut in pay

    Hello,
    Until recently, I was employed as a salaried mid level manager and also received sales and store productivity commission pay. This position required me to work 50-60 hours per week.
    Without notice, I was told my management position was being terminated and that I have the option to continue at a lower level position and receive sales commission pay only. The new position requires the same amount of hours per week.
    I never received any overtime compensation for the extended hours I worked.
    I also worked at times under conditions that did not allow me to take a lunch break.
    Do I have any recourse?

    Can I be required to work these long hours an a stricly commissioned basis?

  • Pattymd
    replied
    OK. Then, all the law requires is that you be paid the equivalent of at least minimum wage for all hours worked (calculated on a workweek basis), and overtime pay at time-and-a-half for all hours worked in excess of 40 in a workweek. That would be $7.25/hour if the employer offers benefits (basically, medical insurance) and $8.25/hour if the employer does not. Navigate to the Minimum Wage Bulletin document from here:
    http://www.laborcommissioner.com/

    See the same page, Overtime Bulletin for overtime pay.

    Let's say, for example, that you have been offered benefits (whether you elected them or not). And let's say you worked 50 hours in the workweek and earned $500 in commissions.

    $500/50 hours = $10 "regular rate of pay"
    $10 * 10 hours OT * .5 = $50 (the straight-time portion of the overtime hours is included in your commission amount.
    Total pay due = $500 + $50 = $550

    Now, if this first calculation is less than $7.25, use $7.25 as your number.

    There is another consideration, however, regarding overtime pay. The premium portion of overtime is NOT required under the FLSA if the retail exception 7(i) applies. That means, if at least half your total pay comes from commissions AND the "regular rate of pay" as shown calculated in the above example is at least 1.5 times the federal minimum wage (which is also $7.25), THEN the overtime premium portion of overtime pay is not required.

    Clear as mud?

    Leave a comment:


  • Mr. Ford
    replied
    I work at a tire store.

    Leave a comment:


  • Pattymd
    replied
    And another question, sorry. What industry?
    Last edited by Pattymd; 11-09-2010, 11:29 AM.

    Leave a comment:


  • Mr. Ford
    replied
    Originally posted by cbg View Post
    Is this inside sales or outside sales?
    Inside sales

    Leave a comment:


  • cbg
    replied
    Is this inside sales or outside sales?

    Leave a comment:

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