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Commission-only employees and their minimum wage

On Behalf of | Apr 24, 2022 | Wage & Hour Laws

Employees working on a “commission only” basis must receive at least the minimum hourly wage for the time they spend working. As noted by the Illinois Department of Labor, the state’s minimum wage is $12.00 per hour for untipped employees who are at least 18 years old.

If commission-based sales personnel work for their employers more than 40 hours per week, they must also earn overtime pay. Employers must provide compensation of at least time and one-half of a commission-based employee’s regular pay rate for each hour exceeding 40 hours in a workweek.

The FLSA’s minimum wage requirement

As noted by, the Fair Labor Standards Act reflects the federal law that mandates employers must pay commission-based sales personnel the minimum wage. If an employee’s earned commission for the week falls below the wage requirement, an employer must pay for the difference.

To remain on track with their earnings, commission-based employees may keep records of the number of hours worked. When dividing the number of hours worked by the amount of their commission-only paychecks, Prairie State employees should receive at least $12.00 per hour. If the amount falls below Illinois’ minimum wage, an employer must make up for it by adding to a worker’s pay.

The exemption for outside sales personnel

Although Illinois’ commissioned sales personnel must earn at least $12.00 an hour, an exemption exists. Salespeople who work outside of their employer’s physical location, such as going “door-to-door” to solicit sales, remain exempt from the requirement.

The pay standards mandated by federal and state laws may appear complex to employers and their workers. Complexity does not, however, allow employers to “bend the rules.” Employees may keep track of their earnings and the hours they work. A legal action may provide a remedy when employers do not pay the wages mandated by state and federal laws.