What are the rules for paying commissions to employees?

In Indiana, employers must adhere to the wage and hour laws when paying commissions to their employees. These laws regulate how and when employers must pay their employees their commissions. The majority of employers are allowed to pay their employees commissions on a weekly, bi-weekly, or monthly basis. Commissionable wages must be equal to or greater than the minimum wage in Indiana. Employers must also pay employees their commissions within the time period established in their employment agreement. It is important to note that employers must provide employees with written notice of how and when their commission rate is determined and how the commission is calculated. Employers must also provide employees with written backup that is updated each pay period. This backup should include the total amount of commission the employee was paid, details of each commissionable sale, and the total commission the employee has earned. Employers must also keep accurate records of all commission payments for at least four years. These records must include information such as the date of the sale, the amount of the commission, and the name of the employee who received the commission. Failure to comply with Indiana’s wage and hour laws can result in penalties for employers. Employees who believe they’ve been denied proper payment can file a wage claim with the Indiana Department of Labor.

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What are the rules for paying commissions to employees?

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