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Concerned in California

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  • Concerned in California

    Does anyone know if it is legal in the state of California to employ a person on a commission only basis. They are a W4 employee but have no benefits, no base pay, no overtime. They are considered non-exempt in the office and are provided a work station ONLY (they supply their own computers, pens, paper, printing, etc.) They are expected to work 9-5 Mon-Fri with occasional overtime which is not paid. This seems illegal to me. Is there a loophole that I am not aware of? Please help...

  • #2
    I'm not aware of any state in which a 100% commission policy is illegal as long as all other state and Federal laws are upheld. If the commissions equal minimum wage plus any OT that may be due there's no problem. Benefits are not required under any state or Federal law.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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