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Slumping auto market puts salespeople out of commission

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in Compensation and Benefits,Human Resources

Commissioned salespeople are hurting in this economy, but their employers may be feeling the pinch, too.

Take, for example, Rick Case Enterprise, a company that owns several Broward County auto dealerships. Rick Case pays its sales employees a draw against their commissions every week. The amount is precisely 40 times the state minimum wage of $7.21. In good times, monthly commissions exceed the draw, and everyone is happy.

But these are not good times. Case’s salespeople often put in 55 to 60 hours a week. With shrinking commissions, the salespeople make less than minimum wage. Now they’ve filed a wage-and-hour complaint with the state to force Case to pay them at least $7.21 for each hour they work.

Note:
Effective July 24, 2009, the federal minimum wage will exceed Florida’s. Employers must begin paying at least $7.25 per hour as of that date.

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