Workers in the collection industry work long hours for their employers, trying to recoup past due monies owed by third parties. At times it is a thankless job, hallmarked by angry customers and long hours. Employees in this industry are often times compensated on a combination of hourly rates and commissions and/or performance based bonuses. While it is fairly easy to determine the monies owed for overtime compensation based on employees’ hourly rates, it is sometimes more problematic to factor in commissions and bonuses in determining what overtime compensation is due as a result of these monies. In situations where an employee is paid commissions and/or nondiscretionary bonuses, the employer must allocate those monies to hours worked, and if necessary, pay the employee additional monies related to the overtime hours that they worked during the commission and/or bonus period.
Moreover, in several cases, employers have actually treated overtime monies as a draw against employees’ bonuses and/or commissions. Under Federal law, this is wholly improper. Overtime must be treated as a premium, paid in addition to the employee’s regular pay, for work performed in excess of 40 hours in a workweek.
If you receive commissions and/or nondiscretionary bonuses and work overtime, your employer may owe you additional overtime compensation if they have not properly included those monies in calculating the amount of overtime due you. You should consider contacting an attorney focused on wage and hour litigation for help determining whether or not you have been paid correctly.