Many employees believe that because they are engaged in “sales” that they are not entitled to overtime pay or minimum wage. The employment lawyers at LaBar & Adams, P.A. have discovered that the basis of this belief by employees is that they are paid on a “commission basis,” and therefore are not entitled to overtime pay or minimum wage. This belief is false. Just because an employee is paid on a “commission” or on a “production” basis does exclude them from receiving overtime pay or minimum wage. Rather, “commissions” is simply a modality of payment.
Examples of Salespersons Entitled to Overtime
It has been found that the following types of salesperson are entitled to overtime pay and minimum wage:
- adjustors for finance company
- advertising solicitors
- auto finance solicitors
- collection company employees
- cosmetics sample employee
- insurance salesperson supervisor
- route salesperson
In fact, LaBar & Adams, P.A. recovered unpaid overtime wage for a class of Sales Coordinators who received commissions. While it is true that the belief that salespersons are not entitled to overtime pay or minimum wage because they are paid on a commission basis is false, some salesperson are excluded from the protection of overtime pay and minimum wage laws. Salesperson that are customarily and regularly engaged away from the employer’s place of business making sales or obtaining orders are not entitled to overtime pay or minimum wage.
Examples of Salespersons Not Entitled to Overtime
The following types of salesperson have been found to not be entitled overtime pay and minimum wage:
- insurance agents
- real estate sales person
- and bank employees that solicit loans, credit cards, or contracts from individuals away from the employer’s premise
If you are commissioned employee and have further questions regarding receiving overtime pay or minimum wage, please contact the employment lawyers at LaBar & Adams, P.A. in Orlando at 407-835-8968 or fill out the online form located on our website.