A sales commission is a sum of money paid to an employee upon
completion of a task, usually selling a certain amount of goods or services.
Employers sometimes use sales commissions as incentives to increase worker
productivity. A commission may be paid in addition to a salary or instead of a
salary. The Fair Labor Standards Act
(FLSA) does not require the payment of commissions.
assistance materials regarding commissions are available from the Office of
Compliance Assistance Policy's Web site.
Laws & Regulations on This
Employee of a "retail or service
Compensation requirements for overtime pay
exemption under section 7(i)
Methods of compensation of retail store employees
Types of employment in which this overtime pay
exemption may apply
Computing employee's compensation for the
What compensation "represents commissions"
The "representative period" for testing employee's
Grace period for computing portion of compensation
Dependence of the section 7(i) overtime pay
exemption upon the level of the employee's "regular rate" of pay
Basic rate for computing overtime compensation of
nonexempt employees receiving commissions