An employer must generally include commissions in determining the regular rate of pay for computing overtime.
Employers often provide employees with commissions but fail to include these commissions when calculating the amount of overtime due to the employee. By excluding commissions from the overtime calculation, employers may be paying the employee less overtime than is actually earned.
A complex set of laws govern the requirements that California employers provide nonexempt employees with overtime when the employees earn other types of benefits in addition their hourly wages. Numerous exceptions limit what benefits are included in calculating the overtime rate of pay to an employee.
Some employees who earn commissions may not be entitled to overtime pay. To navigate the complex statutes regarding whether you are receiving overtime in compliance with California law, you need to speak to an experienced attorney who is familiar with the law in this area.
If you believe that your employer has failed to follow the law in payment of your wages, contact Lavi & Ebrahimian, LLP, today for a free consultation. Our experienced employment attorneys will evaluate your options under the law and can help you obtain the most complete relief possible.
