Meal and Rest Break Rights for Commissioned Employees sue liable incident compensation lawyer attorney

Commissions are a form of wages that you earn for selling a specific product or service. Otherwise, you are paid hourly wages or a salary, which is not based on your ability to sell something on behalf of the employer. Because the system of paying commissions can be easily exploited by employers, commission agreements must be in writing under California law. This agreement must have clear and detailed terms on how commissions are calculated and disbursed to the worker.

Possible ways to calculate what an employee earns in commissions include:

  • Price percentage– a specific percentage of what is paid by the customer
  • Fixed amount per sale– a flat rate dollar amount based on how many items are sold
  • Fixed-floor– a fixed rate per item or a percentage of the sale, depending on which one is higher
  • Profit percentage– a percentage of the profit that’s made from a sale
  • Mixed agreement– calculations made on multiple variables, like number of units sold, total sales revenue, and profit percentage.

As you can see, commission structures can be quite complicated, and that’s why it’s important for employees to understand exactly what they are signing up for. If you have questions or concerns about your rights as someone that is paid on commission, contact the employment lawyers of California Labor Law Employment Attorneys Group.

Meal and Rest Breaks for Hourly Employees

Workers that are paid on an hourly basis, meaning a set and guaranteed rate per hour of work, are entitled to certain meal and rest breaks throughout the day. For example, workers are entitled to a break of 10 minutes for every 4 hours of work. For every 5 hours of work, you are entitled to an uninterrupted meal break of 30 minutes. So, if you have worked 10 or more hours, you would get 2 meal breaks that are at least 30 minutes, and during this time, your employer cannot require you to do anything work-related.

Please note that the guaranteed break times are for non-exempt employees (ones that are typically paid on an hourly basis). Non-exempt employees must also receive the minimum wage and paid overtime if they exceed a certain number of work hours. Exempt employees, on the other hand, are not subject to the same rules when it comes to meal and rest breaks. A commissioned employee is classified as exempt if:

  • They make at least 1.5 times the minimum wage
  • Over half their income is based on commissions
  • They work in retail and other mercantile settings or certain mechanical, clerical, and technical industries

Meal breaks are not required for exempt, commissioned employees. However, these workers are still entitled to paid rest breaks, and this can make things complicated when it comes to wage and hours calculations for those working on commissions.

Court Rulings on Rest Breaks for Commissioned Employees

It’s only been in recent year that commissioned employees were given some of the same privileges that apply to workers that are paid on an hourly basis. Most recently, it was ruled by the California Court of Appeals that commissioned employees have the right to take rest breaks, just like non-exempt workers.

In Vaquero v. Stoneledge Furniture, sales employees were not paid for their break times, and this resulted in workers not taking breaks, as they relied solely on making sales and earning commissions. The courts ruled that this was unlawful, since non-exempt workers are allowed a 10-minute, paid break for every 4 hours of work. Break times must also be paid at no less that the state or local minimum wage rate (some California cities have their own rate for minimum wage).

You are entitled to paid rest breaks if at least 50% of your wages are based on commissions. This is an important development for those working in retail and other settings, where it’s very common for commissions to make up for most of your wages. Cases like Vaquero v. Stoneledge Furniture set the stage for future changes in the laws that protect the rights of commissioned employees.

Contact a Lawyer Specializing in Employment Rights

Being paid on commission means that you do not have access to all the same rights and protections as those who are working for an hourly wage or salary. Nevertheless, you have many employment rights that you may not be aware of, like the right to meal and rest breaks for every so many hours of work. There are still grey areas in how employers can implement break and meal times for those working on commission. This is why legal advice is essential if you believe that your employment rights are being violated by your employer.

The lawyers of California Labor Law Employment Attorneys Group are here to answer all your questions and determine if you have a legal case against your employer. If you are interested in filing a wage and hour violation claim, we are happy to provide you with a Zero Fee Guarantee, so you do not have to pay anything upfront. All costs related to your case are recovered once you receive compensation from your employer. If we do not bring about a successful resolution to your case, you do not owe a single penny in legal fees.

Commissioned employees are not second class citizens, and you have the right to certain protections under California law, which we can discuss with you during a free case evaluation. Please take this opportunity to reach out and seek help from one of our legal experts.

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