What are the rules for paying commissions to employees?
The rules for paying commissions to employees in Maryland depend on the particular job and the contractual agreement between the employer and the employee. Generally, however, employers in Maryland must ensure that their commission payments are consistent with applicable state and federal laws. Under state and federal wage and hour laws, employers must pay overtime compensation to employees if they work more than 40 hours in a workweek. Therefore, commission-earning employees must be included in this overtime pay requirement. Additionally, non-exempt employees must be paid at least the minimum wage for any hours worked during any workweek. Commissions, bonuses, and incentives may all count towards meeting this minimum-wage requirement. Employers in Maryland also must not discriminate when paying commissions. Employers must ensure that commission rates are consistent across all their employees, regardless of race, gender, or other protected status. The Maryland Commission on Civil Rights is responsible for enforcing laws that protect individuals from workplace discrimination in Maryland. Finally, it is important to note that employees may earn certain rights to commissions if they have an employment contract that provides for commissions. In these cases, employers must abide by the terms of the agreement unless they can demonstrate that the employee did not perform the duties required to receive the commission.
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