Did you know if you earn commissions and bonuses, your employer may be required to pay you overtime on that money?
Commissions and bonuses are generally considered wages under the Fair Labor Standards Act. The effect of this is that if the monies are considered wages within the meaning of the FLSA, your employer must pay you an additional sum of money on those wages in weeks that you work over 40 hours.
Your employer cannot pay your overtime compensation from your commissions and bonuses. This compensation is generally called a draw, and it is illegal for your employer to pay your overtime out of the commissions and bonuses you earn. Overtime is a premium and must be paid in addition to these monies.
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