Is it illegal to not pay overtime for sales positions?

Full question:

I recently left another job to take a sales position. This position has a guarantee of minimum wage if commissions greater than that are not earned. Basically, I will be paid which ever is more. I am expected to work a total of 43 hours each week, Tuesday through Saturday, and it seems that this company does not pay overtime for over 40 hours. The manager also expects employees to work on their days off for special events (Sundays) without compensation of any kind. Isn't this illegal?

  • Category: Employment
  • Date:
  • State: Missouri

Answer:

The legality of this situation depends on whether your position is subject to overtime laws. In many sales roles, overtime pay may not apply because earnings are typically commission-based. Since working more hours can lead to higher sales and income, it may be challenging to claim overtime. The minimum wage for forty hours serves as a base pay while you build your client base, with the expectation that successful sales will yield higher earnings.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, commission-based jobs must pay at least the minimum wage for all hours worked. Employers cannot pay less than the federal or state minimum wage, even if employees earn commissions. If commissions do not bring total earnings above minimum wage, the employer is required to make up the difference.