Exempt Commission - After Hours Work
My question involves employment and labor law for the state of: New Jersey
I am an exempt sales person who is paid on a commission versus draw system. My employer makes us perform physical inventory 3-4 times a year and we are not compensated for the after-hours work. Is it legal for them to do so when we are paid on the basis of SELLING product to customers?
Re: Exempt Commission - After Hours Work
It is my understanding that it is REQUIRED that you be compensated for all hours worked, regardless of your usual job duties.
Have you contacted your local Wage and Hour Board?
Re: Exempt Commission - After Hours Work
I believe what he's saying is that he's an exempt, salaried worker, and objects to the fact that his job includes participating in the quarterly inventory. But it isn't clear what the compensation scheme is - a low base salary plus commission, straight commission and nothing more, etc.
Re: Exempt Commission - After Hours Work
As long as you truly meet the exemption, your employer can require you to do things outside a standard job description (assuming inventory is outside of it) even if those activities don't bring you commission.
If you are under the Section 7(i) exemption (sales in a retail environment), there is one criteria that at least 1/2 of your wages for a representative period must be from commissions. I am suspecting that doing work other than sales 3-4 times per year is not going to be enough to break that part of the exemption.
And as long as all your wages (salary and commission) combined equal more than 1 1/2 times minimum wage (which is the 2nd criteria for 7i) for all hours worked, your employer is meeting their burden under FLSA.