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Commision based salary not equaling minimu wage

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wendyk

Junior Member
What is the name of your state (only U.S. law)? MI

I posted this Last Monday (I believe) and editied it after I received an answer. I have two more questions (5,6) I forgot to ask the first time so I am posting it again. Thanks!!!

I am a permanent employee for a cleaning company and am paid 18% of the total amount charged to the customer. I am required to be available M-F 8a-5p. We also are required to arrive at the office at 8am where we sit for a half hour or more waiting for the office staff to put together our binders with the information for the houses we are to clean for the day. I am not paid for the time we are at the office, driving from house to house, putting gas in the company car so we can drive from house to house, or washing the car when it is dirty. I am only paid 18% of what the customer is charged.

Most days, I do not make minimum wage. However, my employer will take the amount of my commision and figure out how many hours is equal to minimum wage and say that is the amount of hours I worked for the week and post that on my paycheck.

My questions are:
1. If I am required to arrive at the office at a certain time and have to wait to receive my assignments, am I entiteled to compensation for that amount of time?

2. Am I entiteld to compensation for traveling to and from the homes I am cleaning?

3. A customer is charged $70 to have their house cleaned and I receive 18% which is $12.60. If it takes me two hours to clean their home, am I entitled to minimum wage at this point since I only made $6.30 per hour?

4. Should I be paid from the time I arrive to the office in the morning to the time I return in the afternoon from cleaning my assigned homes for the day?

5. Is an employer exempt from paying minimum wage and can he pay whatever he wishes if there are less than 50 people employed?

6. If a customer complains that his house was not cleaned to their standards, my boss will send us back to do the house again free of charge to the customer. He does not pay us for this. Is this legal? Am I entitled to compensation for this?
 


pattytx

Senior Member
5. Number of employees has nothing to do with it. It is a rare business indeed that is not subject to the FLSA.
U.S. Department of Labor - Employment Standards Administration (ESA) - Wage and Hour Division - U.S. Department of Labor-Handy Reference Guide to the Fair Labor Standards Act

6. If the company chooses not to pay the regular job rate/commission for this gig, they can do that. However, the hours worked still must be considered when determining 1) whether the minimum wage has been paid for the workweek and 2) the rate of pay for overtime work.
 
According to your story, you are entiled to the full amount in minimum wage every week. (that is 8-5, unless he lets you off early)

You are also entilted to "liquidated damages" under federal law of an equal amount of what is owed to you.

You can get up to two years (Three years if you can prove that he willfully ignored the labor laws) in back pay and liquidated damages.

ONLY IF...

You file a claim in civil court AND NOT with the Department of Labor.

Once you are in court, you might as well add the gas charge, since technically, it was deducted from your salary illegally.

(Oh, and if your boss fires you because you sued him in court, that will be an additional penalty.)
 

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