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switching from straight commission to hourly Washington

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  • switching from straight commission to hourly Washington

    I am being changed over from a straight commission to an hourly rate. The company wants to do this as soon as possible, however I was told that if you start a month on a commission you can not be changed to hourly until the start of the next month. Is this true?

  • #2
    Probably not true. The key is that some states are touchier about notification then other states are. Your state is not my state, so I guess anything is possible. The potential issue is this. Let's say that Bob makes $10/hr, and I change Bob to minimum wage. That is generally legal on a go forward basis, but generally not legal retroactively. Your situation is generally similar. The employer cannot retroactively lower your rate for work already done. Unless your state has some really strange rules however, I am fairly certain that it is legal to do so on a go forward basis. I have never heard of any state having a rule that changes can only occur at the month boundary.

    Pass that, "straight commission" is always legally problematic. Under federal law (FLSA) that only employees that can legally be paid on a straight commission basis that ignores actual hours worked is Outside Sales. Conversely, any employee can legally be paid an hourly rate of at least minimum wage. Microsoft could legally pay Bill Gates an hourly rate of minimum wage. The issue is not moving off of straight commission, it is being on straight commission in the first place.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)