Minimum Wage In Relation To Commission Employees

[JOliver]

What is the name of your state? Michigan

I've done some research on the Michigan Department of Labor and Economic Growth web-site and can't seem to find the information I am seeking.

I've always read that an employee can never "work for free." My question is this.

An employer hires myself as a commission employee. However, the first two weeks are supposed to be guaranteed $800 pay as a "training bonus" to said employee.

Employer fires employee at the very last day of the second week and said employee that is fired is NOT entitled to any pay whatsoever. Employer states that per the employee handbook, said employee must still be on payroll on the pay DATE (this Friday) that the check is to be issued.

Obviously employee can not be there on the pay date, because they were fired after completing two weeks of employment.

Wouldn't said employee still be eligible for the $800 "training pay" per completion of two weeks?

If not, shouldn't the employee at the very least be paid minimum wage for those two weeks?

Thanks.

 

[JOliver]

I may have found the answer.

On the job training which is directly related to the employee's job should be counted as hours worked and paid accordingly.



A training wage of $4.25 per hour may be paid to new employees 16-19 years of age for the first 90 calendar days of their employment.

However, I'm unsure if the two week period would qualify for a commission employee. I fail to see how it would not.

Also, I'm unsure if I must be employed there on the date of pay would stand or not in order to receive my pay.

 

[pattytx]

I may have found the answer.



However, I'm unsure if the two week period would qualify for a commission employee. I fail to see how it would not.

Also, I'm unsure if I must be employed there on the date of pay would stand or not in order to receive my pay.

So, ARE you between the ages of 16 through 19?

Second question. No, you do not have to be employed on pay date. You can either go in and pick up your check or ask the employer to mail it to you.

 

[JOliver]

So, ARE you between the ages of 16 through 19?

Second question. No, you do not have to be employed on pay date. You can either go in and pick up your check or ask the employer to mail it to you.

No, I am 23. I just included the entire context of what it states on the web-site.

The exact words from my employer when I asked them what sort of pay I'd receive was that I would not receive anything because I was not going to be employed on the date of pay. That was the last communication that I had with them before calling today about this. Since, I am due my final check on the pay date after I am let go, that would be this Friday.

The state did say that I have to receive some form of compensation for the two weeks I was employed there.

I just wonder how many times this has happened before with the company and they have gotten away with it.

 

[mlane58]

File a wage claim here:

http://www.dleg.state.mi.us/email_parser/before_filing_wage_claim.htm

 

[ecmst12]

The 4.25 thing is not applicable to employees over 19. You must be paid at least the regular minimum wage for every hour you actually worked.

 

[JOliver]

Correct, I have filed a claim for what is listed in my offer letter that I would qualify to receive a training "bonus" of $400 every week, administered bi-weekly.

Compensation: 100% Commission position with unlimited commissions. During your first five pay periods of employment (administered bi-weekly) you will be eligible to earn a “Training Bonus” of $400 per week (based upon a 40 hour work week) or your commissions earned, whichever is greater.

At the very least I do qualify for minimum wage, which was denied upon termination.

I appreciate the help.

 

[JOliver]

I did have a chance to look over the info you sent me. However, you were
hired for a /commission only/ position therefore, an hourly rate would
not apply. We do pay commssion employees a training bonus and per the
comp plan that you agreed to, you are not eligible for that bonus.

Does this sound right?

 

[ecmst12]

No, it doesn't. You may indeed not be eligible for that training bonus, but they also can't refuse to pay you ANYTHING for the hours that you worked, regardless of whether they normally pay an hourly wage for the position. Whatever the minimum wage is in your state, you must get that at a minimum. Have you filed a claim with the department of labor yet?

 

[JOliver]

No, it doesn't. You may indeed not be eligible for that training bonus, but they also can't refuse to pay you ANYTHING for the hours that you worked, regardless of whether they normally pay an hourly wage for the position. Whatever the minimum wage is in your state, you must get that at a minimum. Have you filed a claim with the department of labor yet?

Sir or maddam,

I filed my claim yesterday afternoon after receiving the note listed above.

I was released at the end of the second week. The first week I worked 40 hrs. The second week I worked 39 and 1/2 hours.

Problem is filing a complaint and seeing the results could take up to 12 months. Fun.

 

[mlane58]

Sir or maddam,

I filed my claim yesterday afternoon after receiving the note listed above.

I was released at the end of the second week. The first week I worked 40 hrs. The second week I worked 39 and 1/2 hours.

Problem is filing a complaint and seeing the results could take up to 12 months. Fun.

The system is what it is. Just keep following up with your state DOL

 

[JOliver]

I have found more information yet to back up that I should be paid at least minimum wage. My former employer has now ceased communication with me and has not gotten back to me yesterday (Monday) like I was told they would.

Whoops.

17. When does an employer of a commission employee have to balance an employee's commissions against his draw?

1. Under the federal or state minimum wage law, an employer is required to pay an employee the minimum hourly wage for hours worked up to forty (40) in a week. In many commission situations, the employee's wages are basically derived from commissions, with the employer providing a "draw" to an employee at least equivalent to the minimum wage.

17. Can an employer of a commissioned employee offset amounts allowed as a draw against the commission earned?

1. Yes, but only if the employee will receive wages for the applicable pay period equal to at least the minimum wage, plus overtime, if applicable, at the minimum wage rate.

 

[JOliver]

Per my other thread...sorry!

What is the name of your state? Michigan

This is in an update to a previous post I made regarding my employer insisting I was due no wages. I was able to finally receive a pay check for minimum wage with the help of the Michigan Dept of Labor & Economic Growth.

However, I have chosen to also pursue what was originally offered to myself per the offer letter that both myself and the employer signed. The offer compensation section of the letter states:

Compensation: 100% Commission position with unlimited commissions. During your first five pay periods of employment (administered bi-weekly) you will be eligible to earn a “Training Bonus” of $400 per week (based upon a 40 hour work week) or your commissions earned, whichever is greater.

Since I was paid minimum wage, this falls far short of the $400 bonus every week ($800.00) total. I worked the entire first two weeks and performed my duties as was required. I was let go for other reasons. The employer did not give performance as a reason for termination.

From what I have been able to find per http://library.findlaw.com/1998/Jun/1/126463.html I understand the laws listed may be from the late 90's but it is the only relative information I have been able to find.

17. Are incentive bonuses "wages" or "a fringe benefit" and are they subject to the wage and payment requirements of the Wage and Fringe Benefit Act?

1. The Act provides that "bonuses" are fringe benefits and not wages. Therefore an incentive payment made for attaining certain quotas is a fringe benefit, not a "commission," (i.e. wages). As a fringe benefit, incentive bonuses only have to be paid if the employee satisfies the requirement of the incentive plan.

My quota was to make X amount of calls, which were met.

Should I pursue a case for the DIFFERENCE of the money ($800 bonus - minimum wage) or, since this is a bonus, would I be right to suggest I am owed the $800 bonus in addition to the minimum wage I had received?

Any help is appreciated.

Thanks.

 

[ecmst12]

I don't think you have a case for this. Your offer letter says you will be ELIGIBLE FOR the training bonus, not that you will definitely receive it. It's not clear that you met every criteria for the bonus because the criteria were not outlined in the letter. If there was a requirement that you remain employed for the full five pay periods, then you didn't meet it.

Since this is part of Michigan's law, if the DOL thought that you were entitled to the bonus they would have told your employer that they had to pay it to you already.

 

[JOliver]

There reasoning for not paying me the bonus is that I was not employed on the date of pay.

You signed in acknowledgment of our compensation plan. Although you were
offered the training bonus all bonuses and contest winnings are an
active employment benefit meaning that you must be employed on the date
of pay in order to receive the bonus. Being that you were termed before
the paydate you are not eligible for the bonus. Per the state, we have
at this point followed through by paying you the minimum wage for the
hours that you worked but we do not owe you for the training bonus being
that you are well aware that you are not eligible.

This is what they tried to say originally for not paying me minimum wage. How can a stipulation be that a "bonus" is paid on the date of pay, considering payroll is processed well before said pay date?

Furthermore...I never signed anything that stated I would have to be employed on the pay date.