There is an “Commission Sales” overtime exemption under Fair Labor Standards Act, 29 USC Section 207(i)… but are those payments really “commissions”?
Under Section 207(i) commission sales employees are exempt from overtime requirements, but only if:
- the regular rate of pay of such employee is in excess of one and one-half times the federal minimum hourly rate (1.5 x 7.25/hr) , and
- more than half their compensation for a representative period (not less than one month) represents commissions on goods or services. 29 U.S.C. 207(i).
There are plenty of people that work under phony “commission plans” who actually should receive overtime pay at time and a half for their hours over 40. (more…)