If you really enjoy working with people, you may really enjoy working in sales. You may be extra motivated to up your commission whenever you can. However, working in sales or in a job where you receive commission can require long hours, an ability to handle lots of rejection and having somewhat unsteady wages.
In California, working in sales and receiving a commission impacts your employment law rights. You need to understand how. So here are seven facts you should know if you work in sales and receive a commission as part of your wages in California:
- If you work on commission, your employer needs to provide you with a written commission agreement.
- If you receive a commission, you must receive that commission twice a month and know in advance what days you will receive it.
- Most employees who receive a commission must be paid at least minimum wage for all hours they work. This includes receiving minimum wage for attending required work meetings, job training and more.
- If you receive commission as a salesperson, here’s how you qualify for overtime:
- If you work more than eight hours in one day
- If you work more than 40 hours in a week
- If you work more than six consecutive days in the same workweek
Your overtime rate is based on an average of your wages and commissions for the week you worked.
- If you work on commission, you will receive compensation for meal breaks.
- If you receive commission, your commission agreement can’t require you lose your commission a customer returns merchandise after the sale and the return isn’t attributable to you.
- If you are an outside salesperson, you are exempt from certain employment rights: minimum wage, overtime pay and rest and meal breaks. To qualify as an outside salesperson, you must spend more than half your time outside your employer’s office. You also must be over 18 and sell items or contracts for products, services or facility use.
It’s not unusual for employees who receive a commission to not receive proper pay for their overtime hours or miss out on receiving paid meal breaks. If you realize your employer hasn’t paid you properly because you work on commission, you should contact an employment law attorney in Los Angeles. An employment law attorney can help you receive proper compensation for any wage and labor law violations over your commission-based job.