Are employers allowed to pay commissions in lieu of an hourly wage?

In Louisiana, employers are generally allowed to pay their employees commissions in lieu of an hourly wage, although the rules regarding commissions vary from state to state. It is important for employers to follow all applicable laws when offering commission-based pay. In Louisiana, employers must pay non-exempt employees a minimum of the state or federal minimum wage. They must also document the hours worked by employees and the pay they receive. If a Louisiana employer wants to pay their employees via commission instead of an hourly rate, they must make sure the commission is in line with the minimum wage as set out in the Fair Labor Standards Act. The commission must equal or exceed the minimum wage and employees must receive an additional rate of pay for overtime hours worked. For example, if the commission rate is $10 per hour, an employee must receive at least $7.25 per hour and receive overtime however they work more than 40 hours in a work week. Finally, employers must also include commission payments in all calculations when it comes to calculating an employee’s overtime rate or holiday pay. In Louisiana, employers are not allowed to charge employees a “transaction fee” or any other type of fee for the commission payments. In conclusion, employers in Louisiana are generally allowed to pay their employees commissions in lieu of an hourly wage. However, they must abide by the rules set out in the Fair Labor Standards Act and ensure that all employees receive the minimum wage or higher, as well as overtime pay and holiday pay.

Related FAQs

What are the requirements for shift differentials?
What is the federal minimum wage?
How are bonuses calculated when employees are paid by the hour?
What must an employer do in order to comply with wage and hour law?
Are employers allowed to set different work hours for different employees?
What are the employer’s responsibilities for paying minimum wage?
What are the rules for paying overtime?
Are employers allowed to pay employees differently based on their experience?
When can an employer legally deduct wages from an employee's paycheck?
What are the laws governing wages and tips for tipped employees?

Are employers allowed to pay commissions in lieu of an hourly wage?

Related FAQs

Related Blog Posts