Paying by a Commission IS NOT An Exception to the FLSA
In my neck of the woods, most tow companies pay their drivers by a commission. While the commission system may be the preferred choice for your company, a commission system, absent some other factors, is not an exception to the record keeping, minimum wage, and overtime requirements of the Fair Labor Standards Act (FLSA). This means that tow companies still need to maintain records of hours worked either through a time clock or set schedule. This also means that employees must be paid at least minimum wage if their commission divided by their hours worked doesn’t equal minimum wage. Finally, employees must also be paid overtime if they are not exempt.