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Do I still get overtime if I am a commissioned salesperson?
In California, certain employees are exempt from receiving overtime pay, depending on their profession and compensation structure. Some salespersons, who are paid based on commissions, are exempt from overtime. However, many salespeople are eligible to get overtime when they work over eight hours per day or 40 hours a week in a pay period.
An employee who is classified as an outside salesperson is not eligible for overtime. An outside salesperson is an employee who regularly works outside of the office more than half the time. The employee earns commissions from selling items or by obtaining contracts or orders for services or products.
However, inside salespeople, who spend more than half their time inside an office (including a home office), are eligible for overtime under California law, provided they make less than half their total income from commissions. For example, an inside salesperson who makes $80,000 in base salary, and $60,000 in commissions, is eligible for overtime in California.
Under federal law, inside salespeople may also be eligible for overtime, even if they make most of their income from commissions, provided they work for a company that mostly sells to other businesses and not retail customers.
Overtime must be paid on all hours worked over 8 in one workday or 40 in one workweek. Salespeople eligible for overtime must be paid an overtime rate based on 150 percent of their hourly salary, plus 50 percent of their hourly commissions.
If you suspect your employer is relying on exemptions to avoid paying you the overtime you are owed, contact McCormack Law Firm right away. Our San Francisco Bay Area employment law attorneys are here to answer your questions.
Other Unpaid Wage, Overtime and Commission FAQs:
- Am I entitled to meal breaks and rest breaks if I am working remotely?
- Are computer programmers and tech workers exempt from overtime?
- Can an employer disclose my immigration status if I file a claim for unpaid wages?
- Can I get fired for claiming overtime pay?
- Can my employer change my commission plan or withhold commissions?
- Can my employer fire me for filing a wage claim?
- Can salaried workers earn overtime in California?
- Do I still get overtime if I am a commissioned salesperson?
- Does my employer have to pay me for off-the-clock work?
- Does my employer have to reimburse me for work expenses?
- How can a lawyer help with my claim for unpaid wages?
- How can I protect myself from wage theft?
- How can I tell if I am an independent contractor?
- How do I file a claim for unpaid wages?
- How do I know if I am entitled to overtime pay?
- How do I know if my employer needs to pay me overtime?
- How is overtime pay calculated in California?
- How much time do I have to file a wage claim in California?
- How much time do I have to file an overtime claim?
- If I receive a salary, am I exempt from overtime?
- If my employment is terminated, is my employer still required to pay me my commissions?
- Is my employer allowed to deduct anything from my paycheck?
- Is my employer allowed to deduct tips from my paycheck?
- Is my employer allowed to withhold my final wages after firing me?
- Is my employer required to pay for my meal break and rest breaks?
- My employer is forcing me to work through meal breaks. What should I do?
- What are my rights regarding my final paycheck once I quit my job?
- What are some examples of wage theft?
- What are the main differences between an independent contractor and an employee?
- What is an exempt and non-exempt employee?
- What is the minimum wage in California?
- What should I do if I suspect my employer is withholding wages?
- What should I do if my boss asks me to work off the clock?
- What types of damages can I get in a wage claim against my employer?
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This law firm was the only one to answer the phone out of the 15-20 law firms that I called that day. I had a wrongful termination case and Bryan really took the time to listen and understand what happened in my situation, and he knows the law to a T. – Shanic M.
I was owed wages and overtime and my employer refused to pay me. So I hired them to file a lawsuit. Bryan easily understood my very complicated case and I am happy with the results. – Ebi Z.
I didn’t have to pay anything, the firm took the whole risk of managing the case. Through the 14 months, Bryan always kept me updated, was very responsive and patient to questions I had. We achieved a resolution out of court in my favor, making me even happier about the experience. – Peter S.
I can honestly say that my experience with Bryan was all the way positive from day one… We had very high expectations about our case and in the end we got what we hoped for. – Roger J.
I won my trial and I got more than I expected. Everyone in the office is so nice and helpful. Even after everything was finished I could call a few weeks after and ask questions to make sure I was protected and they are more than helpful. – Husain N.
I never had to pay Bryan anything up front, nor was ever pressured to settle early. We ended up settling morning of the trial. Bryan is a really sharp, aggressive, seasoned attorney and knew the law inside and out about whistleblower cases. – Kyle B.
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