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Pay Salesman with Commission only?

Dana  Bond's Profile

Hello, We are a Canadian company thinking of hiring a US based "travelling salesman" who is based out of PA in the USA. Are there any restrictions bringing him on with a commission based renumeration as well as shares in the company? Thank you.

Answers

Topic Expert
Malak Kazan
Title: VP, Special Projects
Company: ERI Economic Research Institute
(VP, Special Projects, ERI Economic Research Institute) |

Daana, you may need to set a "phantom" salary for benefit purposes like life insurance; also minimum wage on a salary-basis for PA will have to be paid which is currently set to $155/wk. Hope this helps.

Paula Maietta
Title: Human Resources Manager (Temp position)
Company: The Westin Verasa Napa
(Human Resources Manager (Temp position), The Westin Verasa Napa) |

Daana, It seems the laws in PA are the same as CA. As long as the salesman is strictly outside sales, they are exempt from an hourly wage. If they work inside and outside sales and they spend more than 50% of their time inside sales, then they would need to be paid an hourly rate plus an overtime rate...this way you do not get in trouble for a person working a 10 hour day and not getting paid the overtime.

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