Commission Only Pay in Georgia
Commissions are a common part of employee payment in many jobs in the state of Georgia. However, it is important to examine Georgia employment law and see what it says about commission-only pay. Doing so can help make sure that you remain in compliance with all the relevant laws that apply to you as an employer in the state of Georgia.
Additionally, calculating commissions can be quite a complex task and it is essential to know the laws well in addition to performing the calculations correctly. That is why it is a good idea to talk to a Georgia employment attorney if you have questions about this topic. Let’s examine the employment laws regarding commission-only pay in the state of Georgia.
Can Employees Only Be Paid by Commission in Georgia?
It is important to discuss this when discussing commission pay as it relates to Georgia employment law. The Fair Labor Standards Act applies to Georgia employers and it does not forbid employers from paying employees commissions as part or all of their wages if certain conditions are met.
Do Employees Who Work on Commission Receive Overtime Pay?
This is a complicated question, but the simplest answer is that it depends on the situation. There are several exemptions from the overtime pay requirements of the FLSA for employees paid on commission. The most common applies to employees who primary duty is outside sales and employees engaged in retail sales.
To qualify for the outside sales employee exemption, all of the following tests must be met:
- The employee’s primary duty must be making sales (as defined in the FLSA), or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and
- The employee must be customarily and regularly engaged away from the employer’s place or places of business.
To qualify for the retail sales exemption three conditions must be met:
- The employee must be employed by a retail or service establishment, and
- The employee’s regular rate of pay must exceed one and one-half times the applicable minimum wage for every hour worked in a workweek in which overtime hours are worked, and
- More than half the employee’s total earnings in a representative period must consist of commissions.
Are Commissions Included in Employees’ Final Paychecks?
It depends on the circumstances. It is also important to recognize that employers have different ideas about when an employee has actually earned a commission. Some employers consider that an employee earns a commission as soon as they make the sale. Other employers consider that an employee earns a commission when the employer receives money from the client. Both employers and employees should ensure that they have a clear, written contract about the commissions to be paid.
If the employment agreement states that a commission isn’t earned until the employer receives the money from the client, the employee may have to be patient and wait to get their commission.
If the agreement does not allow the employer to withhold employee commissions, you may have to pay employees their commissions according to the employment agreement. This is the case as long as the employment contract is valid and enforceable. Employers can always talk to a Georgia employment lawyer in order to learn more about this topic.
Call Us Today for Quality Legal Assistance
If you are a commission-only employee in Georgia and you need legal assistance, you should go with DeLong, Caldwell, Bridgers, Fitzpatrick, & Benjamin. We serve our clients with integrity and honesty. We can assist you thanks to our legal expertise and our many years of experience. Contact us by calling (470) 443-0524 so we can provide you with top-notch legal assistance.