Am I still considered exempt?

[leelauer]

What is the name of your state (only U.S. law)? PA

I work in an outside sales role and had been on $24k base salary plus commission. Last month my employer stated that he could no longer to afford this base pay and switched me to $12k. Now this has brought up a few questions;

1. Am I still considered exempt as I understand the minimum is to be paid $455 per week to be exempt?
2. Would this not also mean I should be paid minimum wage with overtime, since I routinely work more than 40 hours per week.
3. There are times that commission is high enough to compensate for the difference in base but often it's not. Am I eligible for payment of whatever is missing to make it up to minimum wage?

I am obviously looking for alternative employment but this is hurting me right now. If I complain, I will surely lose my job and have nothing.

 

[eerelations]

Outside sales work is always exempt.

 

[LdiJ]

Outside sales work is always exempt.

However, doesn't it still have to conform to at least minimum wage for a normal work week?

 

[leelauer]

However, doesn't it still have to conform to at least minimum wage for a normal work week?

This is why I asked. I thought the federal minimum pay to keep exempt status was $455/week?

 

[LdiJ]

This is why I asked. I thought the federal minimum pay to keep exempt status was $455/week?

I don't think that applies for outside sales...but I would think that minimum wage law would.

 

[cbg]

http://www.dol.gov/whd/overtime/fs17f_outsidesales.pdf

 

[leelauer]

Also a side note, when he informed me of this change to the lower rate it was payday. the check he gave me was for the previous 2 weeks worked. Was that even legal? Effectively he retro actively paid me less for a period already worked.

 

[LdiJ]

Also a side note, when he informed me of this change to the lower rate it was payday. the check he gave me was for the previous 2 weeks worked. Was that even legal? Effectively he retro actively paid me less for a period already worked.

Are you W2 or 1099? You are correct that a retroactive change is not allowed for actual employees, and would probably violate a contract for contract workers.

 

[leelauer]

Are you W2 or 1099? You are correct that a retroactive change is not allowed for actual employees, and would probably violate a contract for contract workers.

I am a normal W2 employee.

 

[LdiJ]

I am a normal W2 employee.

Then you can make a complaint to your state Department of Labor...and should. Retroactive changes in pay are a real no-no. You could also discuss with them your base pay situation. 12,000 a year is not minimum wage, so if you had a bad week and had no sales, they would be paying you less than minimum wage.

 

[cbg]

Whether retroactive changes are permitted or not is state specific. I will grant you that it is not permitted in most states, but it is not a Federal taboo.

 

[LdiJ]

Whether retroactive changes are permitted or not is state specific. I will grant you that it is not permitted in most states, but it is not a Federal taboo.

I didn't say that it was a federal taboo...I told him to contact his state DOL.

 

[leelauer]

Then you can make a complaint to your state Department of Labor...and should. Retroactive changes in pay are a real no-no. You could also discuss with them your base pay situation. 12,000 a year is not minimum wage, so if you had a bad week and had no sales, they would be paying you less than minimum wage.

To me the confusion is whether or not Outside Sales are completely exempt from minimum wage under all circumstances, leaving the retro-pay situation out of it.

 

[LdiJ]

To me the confusion is whether or not Outside Sales are completely exempt from minimum wage under all circumstances, leaving the retro-pay situation out of it.

I think that you may be confused about what is or isn't "minimum wage". When I say minimum wage, I am not talking about the $455.00 that normally is required for an exempt employee. I agree that might not be applicable for an outside salesperson. I am talking about the actual minimum wage of $7.25 (or higher in some areas) per hour. $12,000 a year only translates to $5.77 per hour over the course of a year.

 

[leelauer]

I think that you may be confused about what is or isn't "minimum wage". When I say minimum wage, I am not talking about the $455.00 that normally is required for an exempt employee. I agree that might not be applicable for an outside salesperson. I am talking about the actual minimum wage of $7.25 (or higher in some areas) per hour. $12,000 a year only translates to $5.77 per hour over the course of a year.

Yes I did originally ask about the $455 rate for exempt status but I am not clear if the FLSA considered Outside Sales as being 100% exempt from the $7.25 minimum wage rate. If I understand it correctly, and I'm hoping I am not correct, you could work for a 100% commission only job and receive ZERO money every week and it would be totally legal under FLSA, unless a State regulation overrides it.