Are commissioned retail sales people exempt from overtime pay?
Employees of retail or service establishments are exempt from receiving overtime if more than half of the employee’s earnings come from commissions and the employee averages at least one and one-half times the minimum wage for each hour worked. In addition, for this exemption to apply, 75 percent of the employer’s annual dollar volume of sales must be recognized as retail sales. This prevents the retail sales exemption from applying to wholesalers.
