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Non-Payment when working Inventory

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  • Non-Payment when working Inventory

    My husband works in Michigan for a car dealership. He is a parts sales person and they at that time were paid 100% commission with no hourly rate. They had to do inventory and had been told that they would get paid $50 for the night for it. Their normal day goes from 8am-5pm. Inventory lasted until midnight. When their checks came the next week they did not get paid and a week later got word they were not getting paid for it. I was wondering if there was any law against this? Many of those workers worked from 8am-midnight making barely any money and definately none from 5pm on since they are 100% commission.

    Thanks for your help.

    Jennifer

  • #2
    Nonexempt employees must be paid for all hours worked. However, that rate may be as low as minimum wage if the employer desires and, in most states, if the employees are advised of the lower rate before they work the hours.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      So, if the total they made for the day hourly was actually less than minumum wage then they have reason to complain, right?

      Also, if they are 100% comission and in a day do not make what would be considered hourly minimum wage....are the employers liable?

      Thanks,
      Jennifer

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      • #4
        Employees in retail or service industries are exempt from the overtime pay requirements of the FLSA if:

        1. The regular rate of pay on a weekly basis is at least 1.5 times the federal minimum wage; and
        2. more than half their pay for a representative period (at least one month) comes from commissions.

        However, as you can see, they are not exempt from the minimum wage provision. This is something that you are probably going to have to contact the federal Dept. of Labor to inquire about. The fact that the employees receive no hourly rate at all for the work when they are not selling may be problematic; I've just never seen this situation interpreted.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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        • #5
          Thank you.

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