Results 1 to 5 of 5

Thread: Michigan - Is this legal?Inside Sales - Straight Commission - No base or Minimum Wage

  1. #1
    Junior Member
    Join Date
    Apr 2012
    Posts
    2

    Default Michigan - Is this legal?Inside Sales - Straight Commission - No base or Minimum Wage

    I am paid on a straight commission basis, no base or minimum wage, just straight commission. I keep 20% of my collections.

    I do not work outside of the office, I am required to be in during normal office hours.

    Outside of making sales calls on the phone, answering emails, etc. I am also required to write activity reports as well as attend several office meetings during the week.

    Health insurance is available, but I have my own plan and the employer does the minimum match on retirement funds. Most commission employees make over $100k I don't know if that changes anything.

    Is this legal? Again, no base straight commission and required to attend meetings and write reports.

    Straight commission employees receive the same amount of PTO as non-commission employees, except we do not get paid during the time off. If we go over on PTO we have to pay the company back at the rate the non-commission employees get paid. Is this legal?

  2. #2
    Senior Member
    Join Date
    May 2005
    Posts
    5,730

    Default

    Most commission employees make over $100k I don't know if that changes anything. Um, yeah. Obviously all commissioned employees are making at least minimum wage.

    Straight commission employees receive the same amount of PTO as non-commission employees, except we do not get paid during the time off. If we go over on PTO we have to pay the company back at the rate the non-commission employees get paid. Is this legal? . Yup.

  3. #3
    Senior Member
    Join Date
    Aug 2006
    Location
    USA
    Posts
    2,416

    Exclamation

    Quote Originally Posted by EasternGrad View Post
    I am paid on a straight commission basis, no base or minimum wage, just straight commission. I keep 20% of my collections.

    Is this legal?


    Opinion and comment withheld.

  4. #4
    Junior Member
    Join Date
    Apr 2012
    Posts
    2

    Default

    Quote Originally Posted by Beth3 View Post
    Most commission employees make over $100k I don't know if that changes anything. Um, yeah. Obviously all commissioned employees are making at least minimum wage. [/I]. Yup.
    I should better clarify what I am asking. - Can Inside Sales be paid without a base, like a Outside Sales employee? There is a distinction between the two.

    I have read all Inside Sales positions must be paid a base salary no matter the yearly earnings. Even executive level employees making over $100k have to receive a base compensation even if they make over $100k. That is why I added that MOST make $100k+, not all employees.

    Our required duties have been expanded, but we don't receive compensation for those activities. This means less time selling, which reduces sales earning potential.

  5. #5
    Super Moderator
    Join Date
    Jun 2006
    Location
    California
    Posts
    12,268

    Default

    There is a federal law called FLSA. This law requires that the employee be paid at least minimum wage (averaged over the workweek) and overtime if applicable. FLSA is also Exceptions-R-Us. There are something like 100 or so Exempt exceptions to FLSA. Outside Sales is one of the exceptions.

    There is no rule that employees be paid a salary or wage in addition to the commissions. The base rule is that the employee be paid AT LEAST minimum wage and overtime.

    You mentioned $100K. That is part of the Highly Compensated Employee exception. If every single requirement in the exception are followed, the EMPLOYER can choose to use this exception.
    http://www.dol.gov/whd/regs/complian...ighly_comp.pdf
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

Similar Threads

  1. Straight Commission based on inconsistent sales goals...legal? Illinois
    By seeking_truth in forum Illinois Labor Laws
    Replies: 2
    Last Post: 08-18-2010, 11:13 AM
  2. Sales Commission-Minimum Wage Ohio
    By Pengaroo in forum Wage & Hour Laws - Minimum Wage Laws
    Replies: 3
    Last Post: 10-17-2008, 02:50 PM
  3. minimum wage for commission sales
    By swordplay in forum Oregon Labor Laws
    Replies: 4
    Last Post: 10-13-2008, 07:42 AM
  4. minimum wage and straight commission pay North Carolina
    By SPer74 in forum Wage & Hour Laws - Minimum Wage Laws
    Replies: 7
    Last Post: 01-31-2007, 02:10 PM
  5. Commission No Minimum Wage - Inside Sales - PlEASE HELP
    By harvardgrad in forum Wage & Hour Laws - Minimum Wage Laws
    Replies: 1
    Last Post: 05-28-2005, 01:31 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •