Legal Question in Employment Law in California

Minimum wage for commission only employees

All of the executive recruiters who work at this company work on a commission only basis. We get paid usually within 2 weeks after our company receives payment from the client company and our employer withholds all taxes from our paychecks. We work in the company office. Each of us has a desk, phones, and all the usual office equipment which is provided by our company. We are required to work specific hours here. We are considered employees. Isn't our employer required to pay us minimum wage, and can it be in the form of draw against commissions, or does it have to be minimum wage and commission?


Asked on 12/06/01, 5:39 pm

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: Minimum wage for commission only employees

All employees must receive no less than minimum wage for their services. Overtime is presumed to be payable to an employee unless they fall into certain narrow exceptions, most of which fall into the so called "white collar" exceptions. Outside sales people may also be exempt from overtime pay. From your description, it appears doubtful your position is exempt from overtime requirements. Commission pay is okay as long all all of the other labor law requirements are met. You should set up an appointment with a labor law attorney in your area to get a more thorough analysis of your situation.

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Answered on 2/05/02, 12:21 pm


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