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

In Washington, employers are not generally allowed to pay commissions in lieu of an hourly wage. This is because the Washington Minimum Wage Act requires employers to pay employees at least minimum wage for all hours worked, and if an employee is working on a commission basis, it can be difficult to determine if the employee is earning at least minimum wage. Washington law also requires employers to track hours worked for employees who are not exempt from overtime pay. Employers must ensure that employees are being paid for every hour worked, and in a commission-based system, it can be difficult to accurately track and record employees’ hours. To ensure compliance with state law, employers in Washington must pay employees an hourly rate that is at least equal to the minimum wage. However, employers may choose to offer an additional compensation plan that includes commission-based payments in addition to regular pay. This way, employees still receive an hourly rate that meets or exceeds minimum wage, but can also earn commission-based pay. Overall, employers in Washington are not allowed to pay commissions in lieu of an hourly wage. This is because the minimum wage act requires employers to pay employees at least minimum wage, and employers must track and record employees’ hours to ensure they are being paid correctly. However, employers may choose to offer additional compensation plans that include commission-based payments.

Related FAQs

What is the overtime threshold for salaried employees?
Are employers allowed to pay a lower rate for piecework?
What types of financial penalties can employers face for violating wage and hour laws?
What are the rules for paying commissions to employees?
Are employers required to provide employees with work breaks?
What is the difference between exempt and nonexempt employees?
What is the federal law on overtime pay?
What is the penalty for not paying employees the minimum wage?
Are employers allowed to offer bonuses in lieu of wages?
What are the restrictions on employee drug testing?

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

Related FAQs

Related Blog Posts