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Unpaid commissions

Were you not paid your full commission?

Many employees in California are paid on a commission basis. This means theiremployers bases the employees pay on a percentage of each sale that employee made.

However, the rules for pay by commission are often abused by employers. This can occur when employers improperly fail to pay overtime, or fail to provide a proper premium overtime rate.

Commission for Salespersons
If an employee is paid overtime, then their employer must paycommission that factors in to the employees overtime premium rate. However, overtime is not available for all commissioned employees.
A commissioned employeeis exempt from overtime if (a) half of their income is generated through being paid commissions, and (b) the income they receive through commissions is 1.5 times greater than California’s hourly minimum wage.

When are Commissioned Employees Entitled to Overtime?
An employee is entitled to overtime pay if:
the employeestotal compensation, including payment through commissions, is less than $12 per hour;
the total amount paid by commissions is equal to less than half of the employees total earnings;
the employee does not principally sell the product or service;
the employee position is not involved in retail, or in a qualified professional, mechanical, or technical position.

In determining the commission status of an employee, California law examineseach employee’s job duties and salary. Under California labor law, even if an employee agrees to forego overtime, overtime compensation is still due.

If you were denied your earned commission, and your employer failed to pay you, then your employer may have violated the law and you could have a valid claim for owed wages. Contact the aggressive and vigorous employment lawyers at Abramson Labor Group today for a free consultation to find out if you have a claim and what we can do for you to get justice.
Let your voice be heard and get justice today!