Wages
Subtopics
Commissions
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.
Compliance assistance materials regarding commissions are available from the Office of Compliance Assistance Policy's Web site.
Laws & Regulations on This Topic
Regulations
29 CFR
§779.410
Statutory provision
29
CFR §779.411
Employee of a "retail or service
establishment"
29
CFR §779.412
Compensation requirements for overtime pay
exemption under section 7(i)
29
CFR §779.413
Methods of compensation of retail store employees
29
CFR §779.414
Types of employment in which this overtime pay
exemption may apply
29
CFR §779.415
Computing employee's compensation for the
representative period
29
CFR §779.416
What compensation "represents commissions"
29
CFR §779.417
The "representative period" for testing employee's
compensation
29
CFR §779.418
Grace period for computing portion of compensation
representing commissions
29
CFR §779.419
Dependence of the section 7(i) overtime pay
exemption upon the level of the employee's "regular rate" of pay
29
CFR §779.420
Recordkeeping requirements
29
CFR §779.421
Basic rate for computing overtime compensation of
nonexempt employees receiving commissions