Our phone lines are currently not accepting calls due to a network outage. Please email all Social Security Disability inquiries to stacy@donatilaw.com. All other inquiries can be directed to amy@donatilaw.com.

Donati Law, PLLC
  • Home
  • About Us
  • Our History
  • Our Team
    • Don Donati
    • Wanda Donati
    • William "Billy" Ryan
    • Alison Ryan
    • Bryce Ashby
    • Robert Donati
    • Ellen Donati Flechas
    • Janelle Crandall Osowski
    • Brice Timmons
    • Craig Edgington
  • Practice Areas
    • Employment Law
    • Car Accidents
    • Consumer Law
    • Immigration Law
      • Resources
      • Family Immigration
      • Employment Immigration
    • Personal Injury
    • Social Security Disability
    • Veterans' Benefits
    • Wage & Hour Violations
    • Workers' Comp
  • COVID Resources
    • ADA Reasonable Accommodation: COVID-19
    • COVID-19 Safety Complaints & Whistleblower Protections
    • Medical and Family Leave: COVID-19
  • Blog
  • Results
  • Testimonials
  • Contact Us
(901) 209-5500

Call for Prompt Legal Assistance

    • Home
    • About Us
    • Our History
    • Our Team
      • Don Donati
      • Wanda Donati
      • William "Billy" Ryan
      • Alison Ryan
      • Bryce Ashby
      • Robert Donati
      • Ellen Donati Flechas
      • Janelle Crandall Osowski
      • Brice Timmons
      • Craig Edgington
    • Practice Areas
      • Employment Law
      • Car Accidents
      • Consumer Law
      • Immigration Law
        • Resources
        • Family Immigration
        • Employment Immigration
      • Personal Injury
      • Social Security Disability
      • Veterans' Benefits
      • Wage & Hour Violations
      • Workers' Comp
    • COVID Resources
      • ADA Reasonable Accommodation: COVID-19
      • COVID-19 Safety Complaints & Whistleblower Protections
      • Medical and Family Leave: COVID-19
    • Blog
    • Results
    • Testimonials
    • Contact Us
  • Search
  • Contact
  • Staff
Blog /2021 /April /What Are the Drawbacks of Commission-Based Work?
Categories
  • ADEA
  • Affordable Care Act
  • Age Discrimination
  • Arbitration Agreements
  • At-Will Employment
  • Breach of Contract
  • Car Accident
  • Carbon Monoxide
  • Claim Management
  • Class Action
  • Commercial Appeal
  • Commission-Based Employees
  • Congress
  • Criminal Defense
  • Criminal Record
  • DACA
  • Disability
  • Disability Claim
  • Discrimination
  • DOMA
  • DREAM Act
  • EITC
  • Employee Misclassifications
  • Employment Law
  • Employment Termination
  • Estate Law
  • Expungement
  • Fair Credit Reporting Act
  • Family and Medical Leave Act
  • FAQ
  • FLSA
  • Fraud
  • Gender Discrimination
  • Government Shutdown
  • Health
  • ICE
  • Immigration
  • Immigration Law
  • Immigration Reform
  • Independent Contractor
  • Insurance
  • jones act
  • Leave & Break Rights
  • LGBT
  • Local News
  • Long Term Disability
  • medicare
  • Misclassification
  • mississippi river
  • Motorcycle Accident
  • News
  • Non-Compete & Non-Disclosure Agreements
  • Overtime Wages
  • personal injury
  • President Obama
  • Qui Tam
  • Retaliation
  • Semi-Truck Accident
  • Sequential Evaluation Process
  • Severance Agreement
  • Sexual Harassment
  • Short Term Disability
  • slip and fall
  • Small Businesses
  • social security
  • Social Security Administration
  • Social Security Card
  • Social Security Disability
  • Social Security Disability Benefits
  • Social Security FAQs
  • Social Security Number
  • SSDI
  • SSI
  • State Law
  • Taxes
  • Technology
  • Tipped Employees
  • TPPA
  • Trip and Fall
  • Unemployment Benefits
  • Unlawful Presence
  • USCIS
  • veterans
  • Veterans' Benefits
  • Visa
  • Visa Bulletin
  • Wage & Hour
  • Whistleblower
  • Wills
  • Workers' Compensation
  • Workplace Retaliation
  • Wrongful Death
  • Wrongful Termination
Share This Post:

What Are the Drawbacks of Commission-Based Work?

Apr 16, 2021 /
Donati Law, PLLC
  • Breach of Contract /
  • Commission-Based Employees /
  • Discrimination /
  • Employment Law /
  • Independent Contractor /
  • Misclassification /
  • Wage & Hour /

Although commission-based work can bring unlimited earning potential, it can be stressful and unstable. It can also cause tension with employers and create employment law disputes.

Wage and Hour Disputes

One common issue with commission-based work involves wage and hour law and the federal minimum wage. When you’re at work, you are entitled to the federal minimum wage of $7.25 per hour or the minimum wage in your state – whichever is higher. Even if you have a slow sales day, you must be paid for the hours you work. If you don’t make minimum wage one day, your employer may claim that your earnings from another day “balance out” your paycheck, but this kind of thinking does not apply if you have too many bad days in a row.

Additionally, determining an hourly rate can be difficult for salespeople and other commission-based earners because they often work independently and set their own schedules. Flexible schedules can also make overtime issues difficult, but unless you are an exempt employee, you need to be paid for all the hours you work – whether you are making commission during this time or not.

Misclassification

Another issue for commission-based employees is misclassification, which can prevent workers from claiming certain benefits and legal protections. For example, an independent salesperson with multiple clients does not have the same rights as a salesperson who works for just one company, so the company in question may misclassify its employees as independent contractors.

While internal salespeople are entitled to the minimum wage, outside salespeople are not, and misclassification can result in underpaid workers, employees without workers’ compensation coverage, and more.

(Wrongful) Termination

Finally, commission-based jobs generally come with less job security because employers will fire employees who are not performing. Nevertheless, your employer cannot fire you due to a protected characteristic or for taking advantage of benefits like workers’ compensation.

To illustrate: your employer can fire you if you do not sell enough product, but they cannot fire you because “women aren’t good salespeople,” because you are pregnant or plan to become pregnant, or because they disagree with your religious beliefs. Similarly, your employer cannot fire you for reporting a hostile work environment or filing a workers’ comp claim if you get injured at work.

Your Rights as a Commission-Based Employee

Whether you work for commission or not, you have the same rights as other employees, including the right to minimum wage and overtime and the right to a safe work environment. Most commission-based employees are also protected by contracts. If your employer underpays you, misclassifies you, subjects you to discriminatory treatment, or violates the terms of your contract, Donati Law, PLLC can help. We’ve been representing people like you for more than 35 years, and every client is a cause we believe in. Our mission is to improve lives and communities, and sometimes legal action is the first step to a lasting solution.

Our logo, the Donati Shield is a symbol of protection. Call us at (901) 209-5500 or contact us online to put that shield in front of your interests today!

Previous Next



Every Client is a Cause We Believe In

To discuss your case with an accomplished attorney who cares, give our firm a call at (901) 209-5500 or fill out the form below.

  • Please enter your name.
  • This isn't a valid email address.
    Please enter your email.
  • This isn't a valid phone number.
    Please enter your phone number.
  • Please make a selection.
  • Please make a selection.
  • Please enter a message.

Memphis

1545 Union Avenue
Memphis, TN 38104

(901) 209-5500

Memphis

1545 Union Avenue
Memphis, TN 38104
View Map

Phone: (901) 209-5500

Quick Links

  • Home
  • Contact Us
  • Site Map
  • Privacy Policy

Stay Connected

  • Instagram
  • YouTube
  • Facebook
  • Google My Business
En EspaƱol

Contact Us

Donati Law, PLLC
Memphis Attorneys

1545 Union Avenue
Memphis, TN 38104
View Map

Call Today

(901) 209-5500

Local
https://www.donatilaw.com/

Seeking Justice One Client at a Time

Contact Us Now
Internet Marketing Experts The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
© All Rights Reserved.
Powered by Scorpion