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hourly vs. commission
#1
I'm a salon owner and I have an employee that is on hourly vs. commission. This last pay period she got paid hourly because we just took ownership of a salon. How does it work if one day her commission is higher than her hourly but the other days her hourly is higher than her commission? It has to be submitted to hour payroll company but she cant be both. I want to make sure she is properly compensated and happy. Can someone enlighten me
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#2
Whatever her hourly rate is, if she makes more in commission in the week than what she was there in hours to equal out her hourly pay, she should get commission. If she worked 30 hours and did one pedicure, she should get paid an hourly rate. That's the law here in Maine and I'm pretty sure everywhere else. For more info you can probably look at your state labor laws and find the info. Also, is she's an employee you should be taking out proper taxes and paying worker's comp, etc.

Hope this helps. Good luck.
Lori C. Bourgeois
At Last...Salon & Day Spa
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#3
I understand that but per the department of labor laws on hourly vs. commission is whatever is higher at the end of a pay period. When I call it in to the payroll department its either one or the other. I cant say that on certain days she was commission and other days hourly. I think I found a loophole though. If one day her commission is higher than her hourly I will pay her cash the difference. I have to keep her happy because I can't afford to lose.
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#4
You are just asking for trouble if you pay her cash without making it legal (putting it on her paycheck and paying taxes)- assuming you are in the US, you wouldn't be looking at her daily income, you would be looking at her entire pay period average to determine her pay type. You would add up the services she did for the whole pay period and determine if that is more than what she would have made for the hours she worked.
No matter where she goes this would be the same so there is no point in her leaving to go somewhere else.

You do not want to mess with the government by paying her cash.
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