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    janetwit's Avatar
    janetwit Posts: 6, Reputation: 1
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    #1

    Apr 23, 2011, 06:22 PM
    What are the wage and hour laws for commission sales in TN
    My brother works for commission only for a Canadian company that has offices all over the U.S. When appointments are made by their office, he goes out to the individuals home and gives an estimate for the product. He is not paid for his gas, miles,etc. Now they are telling them they have to turn in a time sheet and work at least 8 hours a day. His office is in TN. Is this legal when he is strickly commission and they are not paying him an hourly wage?
    cdad's Avatar
    cdad Posts: 12,700, Reputation: 1438
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    #2

    Apr 23, 2011, 06:28 PM

    Tennessee follows federal law. There is no state law perse to go by.

    They may be having a problem with how the person is designated such as employee or independent contractor.

    What is his current status ?
    janetwit's Avatar
    janetwit Posts: 6, Reputation: 1
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    #3

    Apr 23, 2011, 06:29 PM
    Comment on califdadof3's post
    He's an employee of the company.
    cdad's Avatar
    cdad Posts: 12,700, Reputation: 1438
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    #4

    Apr 23, 2011, 06:34 PM

    Then as an employee he should be receiving a reguler wage. Plus benefits like social security and his taxes should be taken from his check.


    Also he should be getting reguler breaks during the day as well as time for lunch. The travel cost if not being paid by the company would result in a tax deduction on his income tax. But he has to keep really good records and Id say a journal also to go with it.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #5

    Apr 23, 2011, 06:36 PM

    Many employees are commission, real estate, insurance, office supply sales people, in or out going phone sales and more.

    And I would assume that yes, they expect him to work at least 8 hours a day.

    And many sales people have to turn in sheets showing every call or every time they go into a business.

    Often many places require it if they are not doing well. Is he making a lot of money in commission,
    janetwit's Avatar
    janetwit Posts: 6, Reputation: 1
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    #6

    Apr 23, 2011, 06:58 PM
    Comment on califdadof3's post
    They do take SS and taxes out. He deducts the travel cost. So if he's only getting a commission if he makes a sale and no other wage, what do you suggest he do? Contact the Department of Labor in TN?
    cdad's Avatar
    cdad Posts: 12,700, Reputation: 1438
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    #7

    Apr 23, 2011, 07:01 PM

    Mostly it depends on the contract and how it is written when he took the job. Some jobs like a waitress are exempt from minimum wage laws.

    U.S. Department of Labor - Wage and Hour Division (WHD) - Fact Sheet
    janetwit's Avatar
    janetwit Posts: 6, Reputation: 1
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    #8

    Apr 23, 2011, 07:03 PM
    Comment on califdadof3's post
    Is there any specific info online that I could send him? Thanks for responding so quickly. He has a meeting with his boss on Monday, and he's thinking they're going to write him up because he has been very voiceful about this latest change on working 8 hours. They're also told to not leave the customers house until they have a sale. He had one lady crying. She bought the product then turned around and cancelled it the next day. He's really distraught over this because he has not ever had to use such tactics before to make a sale.
    janetwit's Avatar
    janetwit Posts: 6, Reputation: 1
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    #9

    Apr 23, 2011, 07:09 PM
    Comment on Fr_Chuck's post
    He was doing well until they told them they had to put pressure on the customer to buy before they leave their house. He was getting a lot of pick-ups a few day later because he is a very factual and doesn't pressure people and is a very likeable individual. He had the highest commission, but then the boss's "buddy" wasn't making doing well, so they started giving him all the calls that were in high end neighborhoods.
    janetwit's Avatar
    janetwit Posts: 6, Reputation: 1
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    #10

    Apr 23, 2011, 07:10 PM
    Comment on califdadof3's post
    He didn't sign a contract.
    cdad's Avatar
    cdad Posts: 12,700, Reputation: 1438
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    #11

    Apr 23, 2011, 07:14 PM

    He signed something when he took the job. If he didn't then I would be amazed.

    Here is another link:

    Minimum Wage - Employment

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