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Many companies pay their employees in commissions, typically their sales people. A commission agreement should thoroughly explain the basis on which commissions will be paid and include examples of commission computations. (Labor Code \u00a7 2751(a).)<\/span><\/p>\n To be a true commission, it must be based on either net or gross sales figures and must be a percentage of the price of the service or product that is sold. (2002 Division of Labor Standards Enforcement Policies and Interpretations Manual \u00a734.1 (rev 2009).) In addition, the employee receiving the commission must be principally involved in selling the goods or services on which the commission is measured. (DLSE Manual \u00a734.1.2.) The employer’s cost of doing business must not be considered when reaching the “net” sales figures on which commissions are based.<\/span><\/p>\n Many companies fail to pay commissions to their employees upon termination. Sometimes, the individual’s entitlement to payment of post-termination commissions depends on how much work remained to be done for the customer and what the circumstances were surrounding the termination. Several of the factors that may be relevant to whether a company must pay a former employee for commissions are:<\/span><\/p>\n If a commissioned employee is hourly and non-exempt, commissions (and bonuses) must be included in the regular rate of pay for overtime calculations whether they are the sole source of the employee’s compensation or are in addition to a guaranteed hourly rate. (29 CFR \u00a7\u00a7778.117, 778.208.) If a commissioned employee is salaried, their earnings must exceed one and one-half times the California minimum wage and more than half of their compensation must be in the form of commissions. (Wage Order Nos. 4\u20132001, \u00a73(D) (8 Cal Code Regs \u00a711040(3)(D)) and 7\u20132001, \u00a73(D) (8 Cal Code Regs \u00a711070(3)(D)).)<\/span><\/p>\n If you are a commissioned employee, you should consult with a knowledgeable wage and hour employment attorney to determine if you are owed compensation.<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ disabled_on=”on|on|on” module_id=”consultation” module_class=”request-form” _builder_version=”4.13.1″ background_image=”https:\/\/lebelaw.com\/wp-content\/uploads\/2018\/03\/form-bg.jpg” global_module=”230″ global_colors_info=”{}”][et_pb_row custom_padding_last_edited=”on|desktop” disabled_on=”off|off|off” module_class=”banner-text” _builder_version=”4.13.1″ custom_padding=”250px||250px|” custom_padding_tablet=”100px||100px|” custom_padding_phone=”100px||20px|” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.13.1″ custom_margin=”||50px|” custom_margin_tablet=”||30px|” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_button button_url=”\/schedule-your-free-consultation\/” button_text=”contact Us For a free consultation” button_alignment=”center” module_class=”btn-green” _builder_version=”4.13.1″ background_layout=”dark” global_colors_info=”{}” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|tablet” disabled_on=”on|on|on” admin_label=”Row” _builder_version=”4.13.1″ custom_padding=”||0px|” custom_padding_tablet=”0px||0px|” custom_padding_phone=”” disabled=”on” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.9.0″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Request A Free Consultation” _builder_version=”3.27.4″ custom_margin=”||0px|” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|phone” custom_padding=”||0px|” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” custom_padding_last_edited=”on|desktop” disabled_on=”off|off|off” _builder_version=”4.13.1″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|false” custom_padding_tablet=”” custom_padding_phone=”” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”3.25″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_code disabled_on=”on|on|” admin_label=”Map” _builder_version=”4.9.0″ global_colors_info=”{}”]\n
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