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hourly/vs commission only

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  • hourly/vs commission only

    Hi,

    I work for an automobile dealership at an hourly rate in the office. I am also able to do sales at a reduced commission rate; however, on weekends and during auto shows, I am considered "commission only" and am not compensated at my hourly rate. is this legal?

  • #2
    It certainly is complicated. You have to be paid at least minimum wage for all hours worked during the workweek. This is not to say that each and every hour by itself must by paid MW, but rather at the end of the workweek you must be paid at least MW on aggregate. Overtime is complicated because salespeople working for auto dealers do not need to be paid a 50% premium for OT hours, but office workers do. I do not know for certain how DOL would react to one person straddle two different sets of rules like that, but my best guess is that by doing some office work during the workweek, you probably need to be paid at least a 50% premium for the OT hours during the workweek. Past that, we are no longer talking about black letter law but whether or not the employer is following the compensation agreements that they put together. The other question is just how smart the employer is. Having you do both office work and sales during the same workweek is arguably not very smart. A smart employer would make certain that any sales employees stayed 100% inside the Auto Dealer exception.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      what is the auto dealer agreement?

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      • #4
        http://www.dol.gov/esa/regs/compliance/whd/whdfs11.pdf
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)

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