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CA Compensation Law Question

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  • CA Compensation Law Question

    We are commissioned sales people for an automobile dealership in California. We are paid commission or minimum wage, whichever is more. Our new associates are required to attend a three-hour new-hire orientation. Our HR department informed us that we will be paid the minimum wage for the time, but will lose it as soon as we are making more off of commissions. Our question is - is the company required to pay us in addition to our commision pay since we must show up when not scheduled to work?

  • #2
    I don't think so, but this may be questionable. I would recommend you contact the Division of Labor Standards Enforcement of the Employment Development Dept. to inquire.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

    Comment


    • #3
      Pay in alternate allowed

      Section 2.5.5.1 of the DLSE Enforcement Manual:

      Piece rate and commission plans may be in addition to an hourly rate or a salary rate of pay. Such plans may also be in the alternative to a salary or hourly rate. As an example, compensation plans may include salary plus commission or piece rate; or a base or guaranteed salary or commission or piece rate whichever is greater.
      ------ end quote

      However, if you work the 3 hours in one pay period, and then it is "lost" in another pay period when you exceed the minimum threshold, this would not be allowed.

      Michael Tracy
      Attorney
      http://www.gotovertime.com


      Disclaimer: The above response is a general statement of California law. It only assumes the facts that are stated in the message. The above response does not serve to form an attorney-client relationship.
      Michael Tracy
      Attorney
      http://www.laborlawradio.com

      Disclaimer: The above response is a general statement of the law and should not be relied upon as legal advice. It only assumes the facts that are stated in the message. The above response does not serve to form an attorney-client relationship.

      Comment

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