When does an employer of a commission employee have to balance an employees commissions against his draw?
• Under the federal or state minimum wage law, an employer is required to pay an employee the minimum hourly wage (currently $5.25) for hours worked up to forty (40) in a week. In many commission situations, the employee’s wages are basically derived from commissions, with the employer providing a “draw” to an employee at least equivalent to the minimum wage. In these situations, the employer is free to establish a “monthly payday,” bi-weekly, weekly, or twice a month pay period, provided the employer balances the commissions earned against the draw for the defined time period. • Can an employer of a commissioned employee offset amounts allowed as a draw against the commission earned? • Yes, but only if the employee will receive wages for the applicable pay period equal to at least the minimum wage, plus overtime, if applicable, at the minimum wage rate. • When is an employer required to pay earned wages to an employee who voluntarily quits or is discharged? • The Act generally require
Related Questions
- Do the employer and employee have additional rights after an award provided by the Industrial Commission has been or is being paid?
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- When does an employer of a commission employee have to balance an employees commissions against his draw?
