Georgia’s labor code contains no for commission-paid employees, but the federal Fair Labor Standards Act ( ) does. Georgia employers largely follow the federal law because it is more stringent than state law. So employees who are paid on a commission basis are exempt from , right?
Well, that depends on your definition of “commission.”
And that’s a problem, because there isn’t one. The FLSA doesn’t define “commission,” and Georgia state law doesn’t recognize the exemption. As a result, the definition of “commission” has been left to the courts. Courts decide on a case-by-case basis, so employers lack a clear-cut definition.
Some commission situations are well recognized. The FLSA specifically exempts car salespeople from overtime. Employees who are paid flat fees for specific duties (essentially piecework) also may be considered commission employees if employers ...(register to read more)
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