Hi. My boyfriend works at sears in Tennessee. He is on the sales floor in appliances. His pay is either $6 an hour OR his commission, which ever is higher for the week. The only thing is with the hourly wage is he has to pay it back to the company once he starts making commission again. They call it "draw". To me that sounds pretty fishy. The other day he came in at 8am and the store only opened at 9am or 10am I don't rememener which. However he has to sell a certain amount based on now many hours his work shift was. So really he lost money during that time (if he didn't make his day).

My questions are:
1. Is that pay grade legal? Especially the part where he has to pay it back.
2. Are they allowed to have him come in during a time that he has zero opportunity to meet his quota for the hour on commission pay, or should they be giving him an hourly lay of at least 7.25?

Tennessee doesn't appear to have its own minimum wage law, so the federal law would govern. I suggest that you contact the Wage and Hour Division of the U.S. Department of Labor.

The payback provision, as well as the requirement that your BF work for a commission when customers are not present, may very well be wage and hour violations.

Sorry yes commission sales is very legal, And draw against commission is almost a norm in many sales area. Used all the time in the Insurance industry and auto sales.

First it is not a salary or a hourly pay, it is a loan, that is it, He does not have to take it, but it is to give him money to live on when there is little sales. If he is only getting draw a lot, he needs to find another job, since either the sales are slow in that store or he is a poor salesman.

If he gets too much draw, he would owe it back if and when he quits if he does not earn enough to off set that much draw.

I have worked on that system many times, normally with a much higher draw, but then normal commisisons would be 800 or more a week on good weeks.

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Originally Posted by Fr_Chuck

sorry yes commission sales is very legal, And draw against commission is almost a norm in many sales area. Used all the time in the Insurance industry and auto sales.

First it is not a salary or a hourly pay, it is a loan, that is it, He does not have to take it, but it is to give him money to live on when there is little sales. If he is only getting draw alot, he needs to find another job, since either the sales are slow in that store or he is a poor salesman.

If he gets too much draw, he would owe it back if and when he quits if he does not earn enough to off set that much draw.

I have worked on that system many times, normally with a much higher draw, but then normal commisisons would be 800 or more a week on good weeks.

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Explains everything except the "he came in at 8am and the store only opened at 9am or 10am" issue.

The salesperson cannot walk in the door with the customers when the door opens, take his coat off and start selling. Checking inventory, a variety of other things, are part of the employment package.

That "prep" time is - in my area - part of the day and is NOT paid as an hourly wage. Same with closing. Salespeople don't put their coats on and then walk out the door when the store closes, with the customers.

I find the rate of pay unusually low, much lower than Sears pays in MY area.