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#1
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Hello there!
My question relates to commission payments, state is Oregon. I'm opening a salon, and want my stylists to be employees, not contractors. I want to pay on some type of commission basis. I have an appointment with my planner on thursday to discuss what would be best, but I want to be sure I understand the different types of commission pay plans, and whether or not they are all available in oregon. I hate going into meetings not sure I understand! So, my understanding is that draw against commission involves the employee being paid an hourly wage, which is then deducted from their commissions on the next pay period. If they don't make enough to cover the hourly wage, they 'owe' the company the difference. But my question on this method is, aren't I still required to pay them minimum wage? So if minimum wage is $7.50 (welcome to oregon) and I pay them 7.50, but they make no commissions, they don't owe anything because I have to pay them $7.50 an hour, right? So do they only 'owe' if I'm paying them over minimum wage as the hourly rate? In other words, if the employee does not make any commission in a pay period, or does not make enough to equal the $7.50 an hour they were paid, then they just get the $7.50, and they don't owe the company and the company doesn't owe them, correct? Base plus commission means they get the base hourly wage of $7.50 plus a commission (Which would likely be lower than in the previous scenario), and there is no deduction, they get the $7.50 plus their commission amount, yes? Straight commission - this is the one that confuses me. Can I even pay on straight commission if they are an employee and I'm controlling their working hours? If so, I know I must pay them at least minimum wage for any hours worked, so I guess I don't see the difference between draw against commission and straight commission if I have to pay the minimum wage regardless, can anyone clarify that for me? Thank you so much in advance for any assistance, sorry this is long but I wanted to be as clear as possible, let's hope I succeeded! ![]() |
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#2
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A draw against commission can be any amount, but it is recommended that it be at least minimum wage. Other than that, you have a pretty good handle on the options, I think.
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#3
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I was just looking over the forum. This is my first time in any forum or chat. Please bear with me. I own a Massage & Day Spa in NE. I also started business not too long ago and I realized that I need to change some things. I would like to have anyone share words of wisdom especially on employees, commissions, hourly rates and etc., Thanks
AGable |
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#4
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AGable, that is WAY too broad of a question to garner any cogent responses. If you have particular questions, we'd be more than happy to try to help with specific issues.
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#5
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As of right now I pay my thereapist 60% and they have to provide their oil and nothing else. They have to perform 20 hours of massages in a two week period. They are employees, so I do take care of all the taxes and whatever requirements needed. But at this point, it seems I am massaging just to pay the massage therapist. I would like some advice from massage therapist or owners on how they get paid. Do most pay just commission or hourly wages and commission?
Thanks AGABLE |
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#6
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I'm not sure you'll find any here. That's not really the intent of this board and most of the responders are HR professionals and attorneys, not business owners. Is there a professional association or networking group of such types of business owners in your area? Or get in touch with the state Licensing board to see if you can get some contacts?
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