I have received a mini-flood of inquiries during the past couple months about employees who work for “commissions”, which inquiries prompted me to write this blog. As of 2013, all commission agreements must be in writing. The written contract must clearly state how the commissions are calculated, when a commission is earned, how “draws” are applied to commissions, and whether checks will be paid weekly, monthly, or other pay period.
To complicate matters, commissioned employees must be paid overtime wages under certain circumstances. These “circumstances” can get twisted a bit, so a thorough consultation with counsel should be arranged when any “commission” questions arise.