What are the rules for paying commissions to employees?

In North Carolina, employers are obligated to pay commissioned employees at least the same minimum wage as non-commissioned employees. Generally, employers must pay commissions at least twice a month, but employers are allowed to make the payment on a different schedule if they agree to the payment schedule in writing and provide it to the employee. Employers must also keep detailed records of each employee’s wages, and must make the records available to employees and the North Carolina Department of Labor. Employees must be paid for all hours worked, regardless of whether the employees are paid by commission or salary. Furthermore, employers must ensure that employees are making at least the state minimum wage, even if the employee’s commissions won’t cover the full amount. Furthermore, if the commission rate changes, employers must provide written notice to the employee before the commission rate takes effect. Employers must also ensure that commission payments are accurate and reflect all of the services the employee performed. Commissions should not be reduced due to customer returns or refunds unless the employee was actively involved in the refund or return. Additionally, employers cannot require employees to pay for their own expenses related to their duties, such as travel expenses. Employers must also ensure that commissioned employees are paid in a timely manner. Employers must pay commissioned employees no later than the regular payday for covered employees, regardless of whether the commission was earned that pay period or not. Employers must also pay terminated employees all of the unpaid wages and commissions they have earned.

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What are the rules for paying commissions to employees?

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