Are Commisisoned Employees Entitled to Minimum Wage and Overtime?

Generally, the answer is yes. Common industries where commissioned employees are not paid properly include account executives and mortgage loan officers.

1. Account Executives- these employees are typically paid salary plus commission. In that regard, account executives are entitled to overtime pay if they work over 40 hours a week. The reason is simple: Account Executives do not exercise discretion and independent judgment regarding matters of significance. An Account Executive cannot decide how much to sell the product for, they simply follow sales guidelines that they are told. A lawsuit was recently filed against online retailer Groupon for failing to pay its Account Executives Overtime.

2. Mortgage Loan Officers- Many Mortgage Loan Officers are paid commission only, or a draw against commissions. These employees are entitled to minimum wage in weeks where so transactions are made. In weeks where commissions are earned, Mortgage Loan Officers are entitled to premium overtime pay if they work over 40 hours per week. Again, these employees do not exercise discretion and independent judgment, as they simply follow company guidelines and protocols. A jury verdict was just reached against Top Dot Mortgage for failing to pay minimum wage and overtime to Mortgage Loan Officers. The jury verdict was over $9 million, making it one of the largest wage and hour verdicts.