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

[EasternGrad]

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?

[Beth3]

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.

[GotSmart]

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.

[EasternGrad]

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.

[DAW]

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