How Does the Minimum Wage Law Affect Employees Paid on Commission?
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Some employees are paid entirely, or almost entirely, on a commission basis. This is not illegal, but employers must still ensure that these individuals are paid at least the Massachusetts minimum wage ($14.25 per hour in 2022 and $15.00 per hour in 2023) each week.
This can get complicated where commissions are paid less frequently than weekly or bi-weekly, and/or when there is a long lag time between the employee's work and the event that triggers the commission. Many employers solve this problem by paying a guaranteed "draw" each week, that can legitimately be offset against future commissions. If you are a commission only employee and there is no "draw" system to guarantee a minimum payment each week, your employer may be in violation of the Massachusetts overtime laws. Learn more here about commission pay and minimum wage. |
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