If you receive an advance or “draw” against commissions, but there is no written agreement on your employment or expressly that such payments are considered loans against outstanding commissions, the courts will consider those payments to be wages earned for the period. Employers may not divert or deduct a portion of their employees` wages unless they are required to do so or otherwise authorized by state or state law. Currently, the california minimum wage depends on whether the employer employs 25 or fewer or more than 25 people. In 2020, the minimum wage for employees of companies with 25 or fewer employees is $12.00. 90 cosmetologists working for commissions must therefore earn a base rate of at least $24.00 for their additional income to form a “commission”. 91 Although sometimes confused with bonuses or a unit salary, commissions are not either. As noted above, these are wages obtained through the sale of a product or service, not by performing a particular task or service. The labour code protects commission salaries in the same way as other types of wages. 56 And time spent on tasks that have nothing to do with the remuneration of a sales commission must be compensated separately at a rate at least equal to the California minimum wage. 57 Labour Code 204.1 defines commissions as follows: “Commission compensation is compensation paid to an individual for the services provided on the sale of goods or services provided by that employer and proportionately based on the amount or value of those services.” ↥ If you have sales commissions, our work lawyers can help you get paid. We have offices in Los Angeles and San Francisco.
For more details about our office in Los Angeles, click here. For more details about our office in San Francisco, click here. Book a free consultation here. 87 – Remember: for sellers to be exempt from overtime, they must earn at least 1.5 times the California minimum wage for each hour they work, and at least 50% of their weekly income must come from commissions. “Insider sellers are only exempt from overtime. You are always entitled to periods of rest and meals. These positions are excluded from overtime and dietary and rest requirements. The conditions under which commissions are earned are determined by an agreement between the employer and the employee.
13 However, an employer cannot make deductions for things that are only remotely related to the sale. 38 An employer may also not use deductions to transfer his activity expenses to the employee. 39 For example, an employer cannot deduct from the employee`s commission the cost of the company`s electricity or the general costs of the company.