Most salespersons are promised a commission when they make a sale; for some, their payment structure is strictly commission-based only. This is a great way to motivate those to sell as much as possible—the more that is sold, the more money the employee will make. It is also a way to ensure that someone who is not selling anything does not get paid (or does not get paid much, if receiving an hourly rate) without selling the goods, product, or service that is being offered. However, nothing is more frustrating than being the one to close a sale and then to never see the commission from the sale that you were once promised. This can increase economic difficulties for those who are paid strictly on a commission-only basis.
If you are not sure whether or not you may be qualified to receive compensation for sales commissions based on the specifics of your occupation, federal employment laws and employment laws in your state, our employment law attorneys can help.
Did you know?
Inside and outside sales employees are usually exempt from federal and state wage and hour regulations, and most of their income comes through commissions on the product they sell.
Many other workers in the retail and service sectors are categorized as exempt sales personnel and workers in certain states, so therefore the business is not required to pay overtime, permit meal and rest breaks, or understand and follow other rights afforded to non-exempt employees.