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Can I Pay Employees Based on Their Sales or Revenue?

One way to control cost and cashflow for a small business is paying employees based on the revenue they bring into the business.  Most commonly, this involves commissions on sales.  It is also used in professional practices to calculate pay based on paid invoices and fees.  You are still paying the employee, but only as the money to support it actually comes in.

This is legal as long as you ensure that the employees are getting at least minimum wage and, if they are non exempt from overtime, additional compensation for hours worked over 40 in any given week.  This is why some many employers use either a base salary or a draw against commissions to make sure that these minimum requirements are met even in slow weeks.

Learn more here about commission pay under Massachusetts law.


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Can I pay employees based on their sales or revenue?

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  • Home
  • Estate Planning
    • Massachusetts Wills and Trusts
    • Why You Need an Estate Plan
    • Massachusetts Estate Tax
    • Inheritance Tax
    • How to Make an Estate Plan
  • Employment Law Solutions
    • Employment Law MA
    • Employment Termination
    • Sexual Harassment at Work >
      • Sexual Harassment in a Small Business
      • Sexual Harassment and Non Disclosure Agreements
      • Sexual Harassment and Remote Work
    • Wage and Hour Laws
    • Independent Contractor Law
    • Non Compete Agreements >
      • Are non competes enforceable
      • Massachusetts Non Compete Act
      • Pre 2018 Massachusetts Non Competes
    • Equal Pay Act
  • Business Law Solutions
    • Small Business Law
    • Business Contract Basics
    • Civil Suit Defense
    • Legal Issues for Start Ups
    • Trademark Basics
    • How to Incorporate
    • Sale of Business
  • Attorneys
    • Emily Smith-Lee >
      • 2018 Lawyer of the Year
    • Jenna Ordway
    • Rebecca Rogers
    • Stowell Simonton
    • Elijah Bresley
  • Reviews
  • Blog
  • Contact