Minimum wage and MLM Company

[CAGuy25]

I live in CA. My friend has joined a mlm firm, doing door to door selling. They have told him he would get paid $50 a day, however he has worked an average of 10.5 hours everyday. My understanding of the law is that employers are required to pay overtime for any hours over 40 in a week or 8 in a day, their choice. It looks like he will have accrued 52 hours by the end of this week. Meaning at the very least he should be paid for 12 overitme hours.

Is there any paperwork or anything that they could've had him sign that would have relinquished his right to minimum wage and/or overtime? It looks at this time, disregarding the overtime, that it will be a surprise if he gets paid minimum wage. Please advise, thanks.

 

[Beth3]

What's an mlm firm?

If your friend is in a non-exempt (hourly paid) position, no, there are no circumstances under which an employer cannot pay OT. Caifornia requires the payment of OT for hours worked over 8 per day, which is more generous than the federal requirement of OT for hours worked over 40/week. Your friend may call CA's Labor Board.

 

[JETX]

MLM = Multi-Level Marketing

Sorry, OT and minimum wage laws don't apply to him...... he is an 'independent contractor'.

Virtually all 'door-to-door' companies use 'independents' to get around the OT and wage laws.

 

[Beth3]

Thanks, JETX. It makes sense he's an IC under these circumstances. CAGuy, your friend might want to find a different line of employment. Tough work, long hours, low pay, not very safe.

 

[CAGuy25]

At this time he's not sure if they're taking out taxes from his paycheck or not. If they are taking taxes out is he still considered an IC?

 

[HomeGuru]

MLM companies all have a contract commonly called a "distributor agreement". If your friend read it, he would know that he is not an employee but rather an IC.