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

In North Dakota, employers are generally allowed to pay employees a commission in lieu of an hourly wage. However, the wage and hour laws of the state must be followed to ensure that employees are receiving the wages they are entitled to. First and foremost, the state of North Dakota does have a minimum wage. This means that employers must pay employees at least the minimum wage of $7.25 per hour, regardless of whether they are paid an hourly wage or a commission. This includes any and all commissions earned during a pay period. When it comes to commissions, an employer must make sure that they are paying employees in a timely manner and that the commissions are calculated correctly. For instance, if the employee is supposed to receive 25% of the total sales amount for each sale, then the employer must make sure that the commission amount reflects that. In addition, the wage and hour laws in North Dakota require employers to keep records regarding commissions, such as the amount paid out and when the payment was made. This helps ensure that employees are being paid appropriately and that employers are in compliance with state law. In summary, employers in North Dakota are allowed to pay employees a commission in lieu of an hourly wage, but the wage and hour laws of the state must be followed to ensure that employees are properly paid for their work. Employers must also make sure that the commissions are accurately calculated and paid in a timely manner.

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

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