What are the rules governing the payment of employee commissions?

Employee commissions in the District of Columbia are regulated by the District of Columbia Wage-Hour Law and the Fair Labor Standards Act. Under the law, employers must pay commissions to employees for sales or services completed. Eligible employees must receive at least the minimum wage for all hours worked, including commissions.If an employee’s total compensation from commissions on a weekly basis results in less than minimum wage, the employer must cover the difference between the commission rate and minimum wage. Employers must also specify the terms and conditions of the commission to the employee in writing. This should include the rate of commission and how it is calculated, any thresholds or bonuses that may apply, and how long the commission payment will be in effect. Employees must also be given a statement of their gross earnings and commission on each pay period, which must include the total amount of wages, tips, and commissions, as well as the rates of pay. Finally, employers cannot require employees to pay back any commission they have already earned, nor can they deduct money from an employee’s wages if they do not meet a particular goal. An employer may, however, make deductions or withhold money from an employee’s commissions for something like a return or for other valid business reasons.

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What are the rules governing the payment of employee commissions?

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