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Employer Question Texas

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  • Employer Question Texas

    Hey there,

    I'm the operations manager at a small service company. This is my first management position so I expect I'll be back with more. I work for good honest people but some things don't always add up. Here is what I'm running into. Our employees are paid on commission based on the value of the job they complete. 30% + a 5% bonus as long as they keep their paperwork in order and company vehicle clean and maintained. Works out pretty well a highly motivated talented guy can make on average $14-$20/hr but every day is different. Many times they work 10hr days. Some longer some shorter but I'd say on average 9-10hrs. We usually work M-F and Saturday is voluntary. Except, Late next month we have a job that must be done on a Saturday. When I inquired to the owner if we should give them the preceding or following Monday off I was met with much surprise and was told that under no circumstances was I to schedule any time off for them. I know our guys work their tail off and asking them to do 6 10 hour days in a row is a lot. Our work is hard physical labor.

    So what I tried to tell them was essentially "Hey, if we paid these guys hourly we'd be paying overtime all day long Saturday." Their retort was "We work in the service industry. Companies in the service industry are expected to work Saturdays." To which I agree. But, in my opinion if we want to offer Saturday service(on a weekly basis) we should have a set of employees who work Mon-Fri and another who work Tue-Sat.

    So I suppose my question is:



    If one's employees are paid commission for their work how does that factor in with 40hr weeks and over time obligations?
    Last edited by aco2; 09-29-2016, 09:28 PM.

  • #2
    As long as their weekly pay works out to at least minimum wage plus overtime wages (on minimum wage), it is legal.

    TX minimum wage is $7.25 per hour. Assuming an employee works 60 hours in the week the calculation would be as follows.

    40x$7.25=$290

    7.25x1.5=$10.88 (overtime rate)

    20x$10.88=$217.60

    $290+$217.60=$507.60

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