What are the rules for paying commissions to employees?

In the state of Washington, employers are required to follow the guidelines set forth by the Wage and Hour Law when it comes to paying commissions to employees. The law requires employers to pay employees a minimum of two times the state minimum wage, which is currently $13.50 an hour, for any work performed in the state. Employers must also provide written commission agreements that clearly state the method by which the commission will be calculated and when it will be paid. The agreement must also include the total amount of compensation the employee will receive upon completion of the job or task. Additionally, the employer must clearly state in the agreement the method of calculating commissions for partial or incomplete work, if any. Employers must also include the commission rate in the written agreement. All commissions must be paid within a reasonable amount of time as stated in the agreement. In addition, employees must be paid any earned commissions at least once every month and no later than 30 days after the end of the period in which the commission was earned. Finally, employers cannot withhold commissions from employees except when legally allowed such as when the employee is not performing the duties required under the agreement. In such cases, employers must provide the employee with an explanation in writing as to why the commission is being withheld.

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What are the rules for paying commissions to employees?

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