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Salary? Commission? Confused! California

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  • Salary? Commission? Confused! California

    I am a manager for a sales team in Southern California that sells pest control door to door. The salesmen are all college students that do this for summer work. My questions have to do with how they are paid.

    They work 64 hours a week, Mon. through Sat. Starting at 8am, they are trained at the office for 1-2 hours. They then drive to pre-designated area 10 minutes to 1 hour away. They sell until it gets dark (about 9pm) Then they return to the office to turn in contracts for the day. During the day they do take a 1 hour lunch.

    Each salesman is paid a salary of $625 every 2 weeks during a 20 week program (roughly 1280 hours) totaling $6,250. If they sell more than 62 contracts, then they earn a commission of $100 for every sale. Their range of earnings was $7,000 to $12,500. When their totals are divided by hours worked, they are making less than or just over minimum wage with no over time pay. I read portions of section 47 in the Division of Labor Standards Enforcement Policies and Interpretations Manuel and found segments on compensation for training, travel after leaving the office and overtime and salary laws.

    I want to make sure I understand the law very well before I take this to the owners of the company. What is the law and my best course of action?

  • #2
    I am not sure that I am correct, but this sounds like maybe overtime and minimum wage Exempt under the Outside Sales exception.

    http://www.dol.gov/esa/regs/complian...tsidesales.htm
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      I'm thinking I agree with DAW.

      I do have to say, though, and this is just my opinion, I hate these door-to-door sellers. If I wanted/needed your service, I would have called you.
      Last edited by Pattymd; 11-30-2007, 05:58 AM.
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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      • #4
        Salary? Commission? Confused!

        Thank you for the link and everyones help.

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