Legal Question in Employment Law in Illinois
When is it legal to pay inside Sales representatives 100% commission?
Asked on 4/21/16, 7:53 am
1 Answer from Attorneys
Betty Tsamis
Tsamis Law Firm PC
Under federal law, the inside sales exemption applies only to employees who
(a) earn more than 150% of the minimum wage,
(b) derive at least 50% of their income from commissions, and
(c) work in the �retail and service industry.� Employers are engaged in the �retail and service industry� within the meaning of the Fair Labor Standards Act if they derive at least 75% of their annual sales revenue from goods or services not for resale and are recognized as a retail or service establishment in their industry.
Answered on 4/22/16, 6:17 am