- Example Overtime Pay Calculation if paid Commission only
- Weekly Commissions = $850
- Total Hours = 50
- Regular rate = $850 / 50 hours = $17 per hour
- Commission Pay = $850
- Overtime Pay = $17 x .5 x 10 hours = $85
- TOTAL Weekly Pay = $935
- Example Overtime Pay Calculation if paid Hourly plus Commissions
- Hourly Rate = $15 per hour
- Weekly Commissions = $100
- Total Weekly Hours = 50
- Regular rate = $15 x 50 hours = $750 + $100 commissions = $850 / 50 hours = $17 Regular Rate
- $17 x 40 hours = $680 Regular Pay
- $17 x 1.5 x 10 hours = $255 Overtime Pay
- TOTAL Weekly Pay = $935
- Some payroll systems may show the breakdown of pay as follows:
- Hourly Pay = $15 x 50 hours = $750
- Commission Pay = $100
- Overtime Pay = $17 (regular rate with commissions included) x .5 x 10 overtime hours = $85
- TOTAL Weekly Pay = $935
- the employee must be employed by a retail or service establishment, and
- the employee’s regular rate of pay must exceed one and one-half times the applicable minimum wage for every hour worked in a workweek in which overtime hours are worked, and
- more than half the employee’s total earnings in a representative period must consist of commissions.
- The employee’s primary duty must be making sales (as defined in the FLSA), or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and
- The employee must be customarily and regularly engaged away from the employer’s place or places of business. https://www.overtime-flsa.com/overtime-pay-laws-for-inside-sales-employees/