What are the rules for paying commissions to employees?

In Pennsylvania, the rules for paying employees commissions are governed by the Wage Payment and Collection Law (WPCL) and the Minimum Wage Act (MWA). The WPCL is meant to ensure that employers accurately pay employees for wages, bonuses, commissions, and other forms of compensation. The MWA provides that employers must pay all wages, including commissions, at least once every two weeks or twice a month. Commissions must also meet at least the minimum wage rate as set by the MWA. Employers must make sure that employees understand the terms of their commission agreement before payment is made. For example, they must clarify the type of work employees will be doing to earn commissions, the amount of commission to be earned, and the timing of the payments. Employers must also declare the amount of commission employees will earn in writing. This written declaration should contain the total amount of commission to be earned, the basis of the commission, and the time frame in which it will be paid. Employers must also include in the written declaration that the commission will be at least the minimum wage as set by the MWA. Finally, employers must pay commissions in addition to other forms of compensation. For example, employers may not deduct commissions from wages. In addition, employees who have earned a commission but no longer work at the company must still be paid the commission they earned. These rules are in place to protect employees and ensure that they are compensated for their work. Employers must also take care to fully understand and comply with all applicable laws when it comes to paying commissions to employees in Pennsylvania.

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What are the rules for paying commissions to employees?

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