Flextime Compensation and 100% commissions

6341995

I have a couple part question that I hope someone can help me with (the community never lets me down!)

1. We have a couple of employees coming back from maternity leave and they want to work either flextime or part-time. The are both sales executive with a base salary plus commission

a. We would like to offer them 100% commission since their time is going to vary - what do you think about having 2 different compensation plans within the company? Should we offer 100% commission plans to everyone to avoid any discrimination?

b What is the best way to adjust someone's salary who is working flextime without having them check out on the days they are not in the office?

Thanks and please let me know if you have any follow-up questions.

regdunlop

to answer part a of your question you should look at FMLA reinstatement rights and also how your company treated other employees who are absent with other temporary disabilities.

HRforME

I agree with Reg in checking with FMLA reinstatement rights.

From the FLSA side, are these employees doing outside sales? If not what sales exemption do you mean? Is it one of the convoluted special ones like Section 7(i) where the rules get very very convoluted.....and you can actually have higher minimums to meet (all hours must be paid at more than   1 1/2 times minimum when you take into account total pay vs total hours for each payweek).

Even with the basic exemptions, you have to make sure they are making the minimum $455 a week regardless of how much commission they bring in. That amount can NOT be prorated based on hours worked.  "The $455 a week may be translated into equivalent amounts for periods longer than one week. The requirement will be met if the employee is compensated biweekly on a salary basis of $910, semimonthly on a salary basis of $985.83, or monthly on a salary basis of $1,971.66. However, the shortest period of payment that will meet this compensation requirement is one week." -- directly from 29CFR541.600(b)

Honestly, I would make a policy of any part time workers (not just those returning from protected leave) being hourly rather than exempt. Pay them for the hours at minimum wage that they worked plus commission. It honestly is the simplest, most legal way to do so.

 

TXHRGuy

Pregnancy Discrimination Act also comes to mind.

It is possible that you do not have FMLA requirements where you are.  If you do, then you can count the time not worked on the short schedule as FMLA time and you can prorate pay for it, even salary pay.  If you do not, then you ahve a lot more freedom.  HRforME's part time = hourly pay formula is the best non-FMLA solution there is.