Legal Question in Employment Law in California

In California, upon termination does an employer have to pay outside sales commissioned sales person there accrued vacation based on:

A. The base rate of pay (draws or guarantee)?

B. The average rate of pay based on what they earned during the year?

Example: Base rate is $20 hr Average rate is $35 when commission is included. Which one in California does an employer have to determine the accrued vacation pay rate?

Thanks,

John


Asked on 6/08/11, 6:01 am

1 Answer from Attorneys
Isi Mataele 'Isi Mataele Attorney at Law

Depends on the compensation structure and employee designation. If they're on straight commission then or exempt as a small business they are not obligated to pay vacation pay.

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Answered on 6/15/11, 11:54 am


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