I'm thinking start a small business. But I want to pay my employee 5% of the whole sale instead of the hourly salary. Is that legal?
2007-06-22 09:29:28 · 2 answers · asked by Anonymous in Business & Finance ➔ Small Business
If they are independent contractors, then as long as you an they agree, you can legally pay them commission only. If they are employees, you must pay them at least minimum wage.
2007-06-22 09:33:27 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Being that you are their direct employer, unless they are salaried they have to make at least minimum wage ($5.15 in PA) including their commission/base pay/however you get their pay rate. They may be exempt to some of the overtime/time-and-a-half laws by paying them like this, but I would consult a lawyer who practices in Fair Labor Standards if I were you.
2007-06-22 16:40:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋