California Commission Wage Rules

Summary

In California, employers must ensure employees receive at least the minimum wage for all hours worked, even if their commission does not cover the draw. If the commission falls short, employers must pay the difference to meet minimum wage requirements. This difference is not considered free and can be deducted from future commissions. Employers should carefully implement draw against commission plans to comply with state wage laws.

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If I do pay them the hourly wage because they didn’t reach the commission to cover it do I have to give them the draw for free?
In California, if an employee's commission does not cover the draw and you pay them the hourly wage to ensure they meet the minimum wage, the draw is not "free." You must pay the difference to meet the minimum wage requirements, but this amount can be deducted from future commissions.
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