Calculating Overtime Pay for Hourly Plus Commission Employees

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Most employers are well aware of their obligations under the Fair Labor Standards Act (FLSA)—primarily, the requirement to pay at least minimum wage and pay overtime for hours worked in excess of 40 in a given workweek. These apply to a large percentage of employees, unless they fall under one of the various exemptions.

That said, not all employers are well-versed in how to calculate overtime pay when the calculation goes beyond simply paying a base rate at time and a half. The complications can quickly become complex, and employers need to be sure they’re doing the

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