minimum salary

[te1220]

What is the name of your state?

California


I have been working as a recruiter for an independent placement agency for the last 4.5 years.

I am paid a salary of $1500.00/mo (paid 2x a month), plus a commission based on money collected each month for the placements I make.

Someone recently told me that my employer is violating a law (not sure if it is state or fed) regarding minimum salary.

Is she?

 

[pattytx]

Are you an exempt or nonexempt employee?

 

[te1220]

Minimum Salary

California - I am Exempt

 

[BelizeBreeze]

What is the name of your state?

California


I have been working as a recruiter for an independent placement agency for the last 4.5 years.

I am paid a salary of $1500.00/mo (paid 2x a month), plus a commission based on money collected each month for the placements I make.

Someone recently told me that my employer is violating a law (not sure if it is state or fed) regarding minimum salary.

Is she?

"Someone" is an idiot.

 

[cbg]

Actually, Belieze, I'm not so sure of that.

As of August 23, 2004, to qualify as exempt an employee must be earning a minimum of $455 per week. If the employee is receiving $1500 a month, that falls short of the minimum. What I'm not sure of is how the commission falls into this. I believe, but am not certain (Patty will know for sure) that unless the commissions are guaranteed to be a certain level, they cannot include commissions in the $455. Variable income doesn't count - the employee has to be guaranteed an income of $455 weekly.

So it's quite possible, based on the poster's information, that Someone is absolutely correct, although only since August 23, 2004.

 

[BelizeBreeze]

Outside sales people are exempt from the minimum wage law of california.

And even so, since the minimum wage is $6.75 per hour, based on a 40-hour week that would only be $810.00, well within the $1,500 being paid as a minimum.

But then, there are a lot of facts we don't know so I will agree with you that this may or may not apply.

 

[pattytx]

One more question, do you do inside or outside sales?

 

[BelizeBreeze]

One more question, do you do inside or outside sales?

I'd love to hear this one. Because I just know what the answer is going to be....

 

[cbg]

But under FEDERAL law, Belieze, an employee cannot be considered exempt unless they are being paid a minimum of $455 per week. This has nothing to do with minimum wage, California or Federal. It has to do with being misclassified under the Fair Labor Standards Act and the Fair Pay Act.

If the employee is not being paid the minimum pay for exempt classification, the employer is in violation by continuing to classify them as exempt. The remedies would be either to raise their pay to meet the minimum salary required for exempt classification, or to reclassify the employee as non-exempt.

 

[pattytx]

Plus, she said she made $1500 per month, not per week.