What Are the Florida Labor Laws for a Commission Sales Person?

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    Fair Labor Standards Act

    • The Fair Labor Standards Act regulates the wages of non-exempt employees and defines what positions are exempt. Florida employees who are non-exempt, including some commissioned salespeople, must be paid the established minimum wage plus time and a half for overtime. The 2nd Circuit Court of Appeals in Utah upheld the FLSA and ruled against an employer who claimed exemption for commissioned sales people who worked in a retail establishment. Commissioned salespeople who work in inside sales are afforded more protection by the FLSA, in Florida and all other FLSA regulated states.

    Outside Commissioned Sales

    • Outside commissioned salespeople in Florida are classified as exempt from the FLSA regulations for minimum wage and overtime pay. In order to meet the test for an outside commissioned salesperson, the Florida employee must work away from the office and their primary duties must include selling or taking orders for products or services. According to the Labor Law Center, any salesperson who is not classified as an outside sales representative and whose wages do not equal a minimum of $455 per week, should be categorized as non-exempt and thus qualify for the minimum wage and overtime requirements put forth by the FLSA.

    Inside Commissioned Sales

    • In Florida, inside commissioned salespeople must meet the FLSA test in order to be classified as exempt from the minimum wage standard. These employees must spend at least 50 percent of their time selling products or services, whether it is over the phone or in a retail environment. Their wages must meet or exceed the equivalent of time and a half of the established minimum wage per week. If their earnings do not meet the test, these employees are classified as non exempt and must be paid overtime for any hours worked over 40 hours in any given workweek.

    Considerations

    • Florida commissioned sales employees who believe that they should be paid overtime, should consult the Fair Labor Standards Act criteria. If the employee is not classified as an outside sales representative, he may be eligible for overtime depending on his job duties. The law in this area is clear but defining an employee's job duties as they relate to exempt and non-exempt can be difficult. Employees who believe they are spending more than 50 percent of their work time performing manual labor or any task unrelated to sales can consult a labor attorney.

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