I've been looking high and low for some information. The guy who owns the computer shop I work for has, since he opened, been paying employees on a commission only basis. That is, workers only get paid when the store makes money. While this is sometimes a good thing, many times employees were making little more than $2 an hour. I've been looking for some information on whether or not this is legal, or if he has to pay at least minimum wage to all employees. I have looked all over the Department of Labor's webpage and in a few other places. I've also looked in Idaho's minimum wage laws and have found no provision for commission only pay. I'm basically trying to figure out what loophole this guy is using to underpay his employees. I know there is a provision which allows exemption from minimum wage laws if an employee is a full-time student or under internship, but this requires special certificates which I don't believe he has. If anyone knows anything about this, I'd appreciate any info you can give.
To answer the question about why I'm looking around for this info, my boss expects my co-workers to spend upwards of 30 hours per week watching the storefront, even in slow times, while only paying them 30% of all service fees obtained by the store (And then, only the stuff they have worked on). I honestly have nothing to gain from this, since I've been an on-call worker from the begining (No set hours. If there's no work, I don't have to stay). But there have been a number of people who have been worked to their breaking points with what sometimes ammounted to a sub $50 per week paycheck. I don't think it's honest and I certainly don't believe it should be allowed to continue, and I would like to have some legal basis to help him understand this fact (No matter how many times I've suggested he change his pay scheme, he refuses).
[ March 21, 2005, 10:12 PM: Message edited by: Boris ]
Posted by ketchupqueen (Member # 6877) on :
I'd suggest an attorney.
Posted by fugu13 (Member # 2859) on :
First, its highly state dependent.
Second, I'm pretty darn sure its illegal. Go to an attorney (find one by talking to friends and family who've used attorneys in the area), and describe the situation. No reputable attorney will try to charge you for describing the situation and then getting a quick response from them.
Posted by Shan (Member # 4550) on :
There is a federal minimum wage law standard, but there also seem to be innumerable loopholes.
An attorney would be a good place to go - frequently, there are leagl clinics for indigents and low-income persons - contact your state attorney general's office for minimum wage information, and/or referrals.
Posted by Kwea (Member # 2199) on :
Most of the time, speaking as someone who works on commission, as long as their weekly pay on commission exceeds the min, he doesn't have to supplement it.
also, it isn;t State dependant, it is a Federal wage law, unless the state sets higher standards than the Federal ones, in which case it superceedes the Federal.
In other words the States are allowed to raise the min wage to higher than the Federal min, but not lower than it.
But the hourly wage isn't usually tied to each shift, it is tied to the pay period...so if they make $2 an hour one day, and $9 an hour the next, it would probably exceed the min hourlynwage for the week.
See a lawyer, some sort of free council program in available....the unemployment office has labor lawyers usually, for the use of cases like this.
quote: But the hourly wage isn't usually tied to each shift, it is tied to the pay period...so if they make $2 an hour one day, and $9 an hour the next, it would probably exceed the min hourlynwage for the week.
Thanks for the info Kwea. That was actually the web site I was looking through for info on this. The commission system he has used since opening was not supplemented at all until about 5 months after I started working there. For the most part, I received an average of $2 an hour (Sometimes $1 an hours) for the first 3 months I worked there. Since I didn't have set hours and wasn't really required to be there I don't have much to stand on legally I don't think, but I was actually paid more than my co-workers, who were paid probably a dollar or less an hour, while being required to watch the store-front, handle customers, research part prices, and all sorts of other things. Basically, three people covered the store for 10 hours each day, overlapping an hour per shift. The average paycheck for the first 4 months I was there was about $100. Sometimes that ammount dipped down to $30 for individual paychecks for the same ammount of work. After 5 months, I convinced the guy to allow a $100 per pay period (two weeks) minimum for all employees, who still worked the same ammount of time until 3 months later, when the third person was removed from the equasion but the pay scale stayed the same. I got tired of it, as well as too busy with school so I quit for a period of time. I started working there again about 3 months ago to pay the bills, and things had only marginally increase, with technicians actually getting paid for time spent working on warranty repairs (I did all the warranty repairs while working there. I was paid a higher commission for this, along with managerial duties, and after the pay minimums were introduced, I averaged about $250 per paycheck, while working considerably more than 30 hours per week.)
So mostly this is a rant at how poorly run this business is (More recently, the owner has been taking week-long trips to Canada for what he "says" is business. Everyone who works there knows he makes these trips to see his fiancee and for no other reason.). Yeah...Anyway. I'm done venting (I'd keep going on how unethical this guy is and how I think that if the small business owners around here found out about how he runs things, he'd probably be lynched, but I won't )
Posted by Boris (Member # 6935) on :
Heh, I just went to Beren's link. Idaho doesn't have its own department of labor. Figures.
[ March 22, 2005, 12:38 AM: Message edited by: Boris ]
Posted by Kwea (Member # 2199) on :
Still, there is some good info there, it might help a bit.
Posted by Farmgirl (Member # 5567) on :
This does sound highly irregular.
I have done contract and/or commission work before - like for newspapers (paid per story) or for computer work. But it was for a specific job which usually covered a specific period of time. (like, in your case, for the time it took to fix one computer).
But the just "hanging around watching the storefront" doesn't sound like legitimate contract work to me, if he is not paying them at all during that time. They are providing a service (watching the store and being on-call and ready for customers) and not getting paid for it.
Farmgirl
Posted by Farmgirl (Member # 5567) on :
I'm bumping this in the hopes that Dagonee and some will weigh in on the issue..
Farmgirl
Posted by Dagonee (Member # 5818) on :
I got nothing - all the good sources have been linked, and my company always paid well above minimum wage, so it wasn't an issue. Whether someone is an independent contractor, who has to get overtime (under the old rules), this kind of thing I've dealt with as an employer. But not this.
The government agency is the way to start. Cheaper, for one, and more leverage for another.
Posted by jeniwren (Member # 2002) on :
Dumb question, but why does anyone work there??
Posted by Boris (Member # 6935) on :
quote: Dumb question, but why does anyone work there??
Because we're college students who like working with computers in a town where there are two stores (Radio Schmack doesn't count) that have anything to do with computers. Only one hires people. Guess which one. I actually just found out that he's decided to give his shop-watchers a minimum paycheck of $200 a week (I still only get paid commission cause, well, I'm there maybe an hour a day). Great for the people who work there now, but almost makes me more angry looking back at all the people who've been there before.
Posted by TomDavidson (Member # 124) on :
Why does it only almost make you angry?
Posted by fugu13 (Member # 2859) on :
IME, college students aren't too good at asserting themselves, or at working out when somebody's walking all over them (and thus don't angry about it).
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