Do you receive commission pay, and work over 40 hours per week?
If you are answering “Yes” to the above question, you very will could be owed additional money. “How so,” you ask? Let me first say, many employers know what I am about to point out and then there are others that just don't know the law.
Weighted Average Calculation When Working Overtime and Receiving Commission
If you are a non-exempt employee, meaning you receive an hourly wage and in addition to that you receive commission or non-discretionary bonuses, AND work overtime hours, than the commission and non-discretionary bonuses must be calculated at the overtime rate also.
This math for the purpose of the labor code is called the weighted average. This is the method that wage and hour attorneys, Labor Board, Department of Labor calculate how much you should have been paid and what you were actually paid.
Essentially, we add-up all the hours at your regular hourly wage and add the commission earned during the pay period, then divide the total number of hours worked into the gross amount. Those hours exceeding 40 hours in the work week must be paid the regular hourly wage plus 50% of that regular hourly wage. Sounds complicated and can be complicated, but we can work the numbers out, including the penalties and interest you would also receive.
The Law Offices of Scott A. Miller, A Professional Corporation has recovered millions of dollars for employees who never realized they were even due extra compensation. For a no cost consultation give us a call at 855 WAGE GUYS which is 855-924-3489