Can I be paid less than the minimum wage if I work a commission-only sales job?

Some salespeople are exempt from minimum wage and overtime laws.

Updated by , J.D., University of Missouri School of Law
Need Professional Help? Talk to an Employment Rights Attorney.

There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please add a valid Email
Phone Number is required
Please add a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Description is required
By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

Question: I have taken a sales job recently as an outside marketing representative. My earnings are 100% commission. The amount I have been earning working full time for a whole month has been less than minimum wage per hour. Is this legal?

Answer: It depends. Most employees are entitled to earn at least the minimum hourly wage, whether they are paid hourly, on a salary basis, by piece, by commission, or in any other way. The current federal minimum wage is $7.25; if your state or local government has a higher minimum wage, you are entitled to the higher amount.

However, there are some exceptions. For example, if you are an independent contractor rather than an employee, you aren't protected by the minimum wage laws.

Under federal law, outside salespeople are also not entitled to the minimum wage. An outside salesperson is an employee who customarily and regularly works away from the employer's place of business, and whose primary duty is making or taking orders to sell goods, services, or the use of facilities. If you fit within this definition, you may be exempt from the federal minimum wage and overtime laws. However, if a state or local law entitles you to the minimum wage, you might still be protected.

Get Professional Help
Talk to an Employment Rights attorney.
There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please add a valid Email
Phone Number is required
Please add a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Description is required
By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you