Are you a commissioned employee? Don’t assume you’re not eligible for overtime pay.

The Inside ScoopSo many salespeople are of the mis-impression that if they are a commissioned employee, they have no overtime rights, and they simply “eat what they kill,” so to speak.

However, while the Fair Labor Standards Act provides that certain commissioned salespeople are not overtime pay eligible, many others are. It is very common for employers – and employees – to be unaware of this. For starters, outside salespeople are exempt from overtime, meaning if you do your selling outside the place of business, then you are not generally entitled to overtime pay for hours worked above 40 per week. Inside salespeople may be entitled to overtime pay, however, if the commissions they earn do not represent the majority of their wages.

So, if a salesperson has a base salary of $500 per week, but their base pay represents the majority of their earnings, then they should still be entitled to an overtime premium for overtime hours worked. The code of federal regulations (CFR) lists many industries in which inside salespersons are to receive overtime pay even if they are 100% commissions. For example, any employee selling financial services or financial products or mortgages are to receive overtime wages.

If you are a commissioned employee, do not automatically assume you are not overtime pay eligible. Federal law provides up to three years of back-pay, plus double damages. It adds up, so call Shavitz Law Group directly at (800) 616-4000 or contact us at and let us help evaluate what additional pay you may be owed. YOU EARNED IT, NOW LETS GO GET IT.