Slumping auto market puts salespeople out of commission — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Slumping auto market puts salespeople out of commission

Get PDF file

by on
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.

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.

Leave a Comment

Previous post:

Next post: