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Commission for Non-Exempt

CTAYLORCTAYLOR 13 Posts
in Compensation Vote Up0Vote Down
We pay a quarterly commission based on the sales of a specific product. Each employee receives 10% commission on every sale they obtain. Do we need to include this when calculating hours worked?
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Comments

  • 2 Comments sorted by Votes Date Added
  • jujujuju 120 Posts
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    In my experience, hours worked are hours worked. I would not include it in that calculation. However, you may need to factor the commission into any overtime pay since the employees are non-exempt. There are a lot of forum members more knowledgeable about this than me. I'm sure they will have more specific feedback.
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  • ShadowfaxShadowfax 910 Posts
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    [font size="1" color="#FF0000"]LAST EDITED ON 10-11-04 AT 11:25AM (CST)[/font][br][br]Juju's correct. A non discretionary bonus or payment must be included in any computation of hourly wage for purposes of calculating the overtime rate. If you have to make this calc, your hourly rate my vary on a quaterly basis. See 778.119.
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