What rights does a commission only employee have to compensation?

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What rights does a commission only employee have to compensation?

I have been offered a job that is commission only compensation, although I will be considered a employee of the company. I will attend a 2 week, full 40 hour per week training session. After that I will attend more training at 3 full day’s week for 4 more weeks. I will not be paid for any of this. I will receive some leads after the initial 2 weeks. After that, I will be given approx 10 leads/appointments per week based on the % of my sales. I will go to these people’s homes to do the sales presentation. I am also required to work 8to 12 hours per week in certain stores generating leads for the company. I will not be paid of this either. It will take 8 to 12 weeks to see any commissions. I must supply my own cell phone with data plan, laptop and wireless service and gas. Is this legal for someone who is considered an employee of the company?

Asked on June 8, 2012 under Employment Labor Law, Colorado

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under the laws of all states in this country, if you are truly an employee of the employer you are entitled to minimum wage in addition to the commissions that you are receiving. If you were an independent contractor then you are not entitled to an hourly rate under the law if that is what your agreement is.

I do suggest that any agreements you have with your employer that such be memorialized in writing for future reference and need. You might also wish to consult further with a labor attorney or your local department of labor regarding your question.


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