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Compensation and Commissions: Understanding Employment Agreements

By William Chanfrau, Jr. on October 20, 2016

Signing an employment agreementThe lawyers at our Daytona Beach law firm have helped so many people with injury cases as well as matters related to business law. Whether there are major issues involving the dissolution of businesses or disagreements over pay, we can offer our insight, experience, and devotion to our clients.

When it comes to lawsuits over the fairness and legality of employment contracts, a number of disputes come down to hourly pay, salaries, commissions, and overall wages. Commissions can be particularly difficult issues given the laws in our state. Let's consider compensation and commissions in brief below.

Florida Commission Laws and the Minimum Wage

In the state of Florida, employees who work for commission are considered exempt from the existing minimum wage laws. Commissions also includes tips, which means that sales people, retail employees, and waiters or waitresses may all fall under the same group.

Rather than the federal minimum wage, they are paid a base salary and any tips or commissions earned are counted as the employee's wages. If the employee's commissions and tips do not amount to at least the minimum wage, the employer must compensate the employee.

Outlining Compensation and a Commission

As you can imagine, this combination of hourly compensation as well as tips and commissions can lead to difficulties or misunderstandings between employers and their employees. This is why the compensation and commission issues are outlined in the employee's contact. It's important that employees consider their contracts and the compensation agreement therein.

Disagreements Over Commission Payments

Disagreements may arises over compensation and commissions for a variety of reasons. In some instances, an employee may be hiding or misreporting tips or commissions in order to be compensated more on top of these earned wages. In other cases, employers may be taking advantage of their employees by not compensating them properly for wages below the minimum wage. Similarly, employers could be cheating employees out of rightfully earned overtime pay.

Note the Wording of the Contract

Read every word of an employment agreement carefully, and do not hesitate to ask HR representatives or supervisors if you have any questions. Knowing what you are signing before agreeing to start employment somewhere is crucial.

It might be ideal for employees to present their contract to a lawyer before signing and starting work. This caution helps ensure the utmost fairness for all parties involved, and helps employees know what their rights are.

How Employment Lawyers Can Help

Disputes about compensation, commissions, and contract wording can be quite difficult. These sorts of legal disagreements require skilled attorneys to help parse language and ensure that local, state, and federal labor laws are taken into account of any agreement that is made. These labor laws and standards can be both confusing and overwhelming for most people.

By working with an attorney, you will have skilled litigators on your side. They will parse the language of the contract and determine who it holds up against laws on the books.

Learn More About Your Legal Options

To learn more about your legal rights and options with regard to employee compensation and commission agreements, be sure to contact our team of attorneys today. The lawyers of Chanfrau & Chanfrau will help you in your time of legal need.

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