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

In New Mexico, employers are allowed to pay commissions in lieu of an hourly wage under certain conditions. Wage and hour law in the state requires employers to obtain written consent from their employees before paying them a commission. In addition, employers must follow certain rules and regulations in determining the amount of commission to pay their employees. The law also requires employers to pay employees no less than the federal minimum wage for every hour they work, no matter what form of compensation the employer pays the employee. If employers are paying employees commissions, the commission rate must be at least the same as the minimum wage rate. This means that if the minimum wage rate is $7.50 per hour, the commission rate must be no less than that. Furthermore, employers must provide employees with a written statement of the total amount earned, including the commission rate and the amount of hours worked for which the commission was paid. Employers must also provide a written statement of the terms and conditions of payment of the commissions. In summary, employers in New Mexico are allowed to pay commissions in lieu of an hourly wage, but they must follow certain requirements such as obtaining written consent from employees, ensuring the commission rate is at least the same as the minimum wage rate, and providing employees with written statements of the total amount and terms and conditions of the commissions.

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

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