Retail Store Employees

Many employees selling high-end retail goods are paid solely on a commission basis. However, employers often misclassify these employees as exempt either because they are paid commission only, or because they mistakenly apply the "retail sales exemption," a very narrow exemption under the FLSA. In order to qualify for the exemption, you must be working for a retail establishment, open to the general public, earn more than 1.5 times the minimum wage, and be paid at least 50% commissions.

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