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Calculating Hourly Wage vs commission for auto salesmen, California

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  • Calculating Hourly Wage vs commission for auto salesmen, California

    I know when the months total commission does not total or equal the value of the hours worked (hourly wage) the dealership has to pay you based on hours. My questions are... (1) is the statement below correct about calculating hourly wages?

    "The first exemption, the exemption for employees who are paid primarily in commissions, is relatively straightforward. A salesperson is exempt and not entitled to overtime pay if more than half of her pay is in commissions, so long as her hourly earnings are more than 1.5 times the minimum wage. See Cal. Code Regs., tit. 8, § 11040, subd. 3(D). In most cases, the question whether the commission pay exemption applies can be determined by looking at the salesperson’s pay documentation and hours worked to determine whether (1) she earns at least $13.50 per hour (the California minimum wage of $9.00 per hour multiplied by 1.5), and (2) over half of her earnings are commissions. If both of these are true, the salesperson is exempt and not eligible for overtime pay."

    I recently made $1,800 in commissions last month, but worked 227 hours.
    227 x $13.50 = $3064.
    My employer calculated the exact regular hours, plus 1.5x hours, plus 2x hours to pay me only $2,400.

    (Question #2) From the previous 3 sentences, did my employer short me or are they allowed to choose how they want to calculate hourly wage to make it work out in their favor?

  • #2
    Duplicate post.

    Reference http://www.laborlawtalk.com/showthread.php?t=315723 posted previously & reply there.

    (Please post your question only once - when someone comes along who can answer your question, they will.)
    Last edited by Betty3; 08-18-2015, 05:46 PM.
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