Is it legal for my employer to pay me almost nothing in a slow week on commission only?
Published September 10, 2026
The short answer
Being paid commission only is a way of calculating pay, not an automatic exception to the federal minimum wage. The Department of Labor measures compliance week by week: for a covered, non-exempt worker in a non-overtime week, total earnings divided by compensable hours has to reach the applicable minimum. But a separate exemption removes that floor entirely for employees whose primary duty is selling away from the employer’s place of business — so which rule applies turns on the work itself, and on the state.
The answer that circulates online is that commission only means paid only when you sell, and that a bad week can lawfully come to almost nothing. For a covered, non-exempt worker that is not how the federal rule works. For one particular kind of commission seller it is much closer to right — and that exemption is the half of the question most versions of it leave out entirely.
What follows quotes the Department of Labor on both halves: how a week is measured against the floor, and who sits outside the floor to begin with. The second decides whether the first applies at all, which is why it is here rather than in a footnote.
How does the Department of Labor measure a week against the minimum wage?
Week by week, against everything the week paid rather than against an hourly rate. The manual the Department’s own investigators work from sets the method out, and it names commissions in the list of pay methods the test survives unchanged.
Two things in the passage are doing work. It is scoped to weeks without overtime, and the divisor is compensable hours — which is not the same as the hours that produced a sale.
“In non-overtime workweeks or in workweeks in which the overtime provisions do not apply, an employee subject to section 6 of the FLSA is considered to be paid in compliance if the overall earnings for the workweek equal or exceed the amount due at the applicable minimum wage. This is true regardless of whether the employee is paid on the basis of a single hourly rate, different hourly rates, commissions, certain bonuses, or some combination of these methods. In other words, if the employee’s total earnings for the workweek (including certain bonuses such as a production bonus, see FOH 30b07) divided by compensable hours equals or exceeds the applicable minimum wage, the employee has been paid in compliance with section 6.”
What is the floor being measured against?
The Department states it with the date it took effect, so it is quoted here rather than restated. A figure that arrives attached to the document carrying it, and to that document’s own revision date, is a figure a reader can age for themselves.
“Covered, nonexempt workers are entitled to a minimum wage of $7.25 per hour effective July 24, 2009.”
Who is outside the minimum wage altogether?
Outside sales employees. The exemption sits in Section 13(a)(1) alongside the executive, administrative and professional ones, and it is worth reading closely for what it reaches: not overtime alone, but the minimum wage as well.
A rep whose selling happens mainly away from the employer’s premises may sit inside it, and the floor described above then does not reach them. That is why the question at the top cannot be answered with a flat yes.
“Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees.”
What makes someone an outside sales employee?
Two things, and neither of them is how the pay is calculated. The fact sheet on this exemption states the duties test in full, and the second half of it is the one that decides most cases — where the selling customarily and regularly happens.
The same fact sheet adds that “the salary requirements of the regulation do not apply to the outside sales exemption”, which is why a commission-only arrangement with no base does not by itself put somebody outside it.
“The employee’s primary duty must be making sales (as defined in the FLSA), or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and The employee must be customarily and regularly engaged away from the employer’s place or places of business.”
Isn’t there a commission exemption for retail as well?
There is, under Section 7(i), and it is regularly mistaken for the one above because both involve commission. The difference is what each lifts. The Department’s fact sheet on 7(i) says so in its own title — it is an exemption from overtime — where the outside sales exemption reaches the minimum wage itself.
Its second condition is the one that gets quoted short, and the ending is the whole of it. The sentence names the weeks it applies to; cut before that clause, a rule about weeks containing overtime reads as a rule about every week.
“the employee’s regular rate of pay must exceed one and one-half times the applicable minimum wage for every hour worked in a workweek in which overtime hours are worked”
Where does state law come in?
On top, and frequently higher. A number of states set a minimum wage above the federal one, some have their own rules about when commission becomes payable, and some define exempt sales work more narrowly than the FLSA does.
Which of those applies depends on where the work was performed rather than on where the company has its head office. A state labor department is the only place that can say, and asking costs nothing.
What is worth writing down while it is happening?
The hours actually worked that week — all of them, including selling time, floor time, opening and closing, meetings and training, not only the hours that produced a sale.
Then everything the week paid: commission, any draw, any base, the pay date, and the arrangement as it was described at the time, with the date it started.
And where the selling actually happened — roughly how much of the week was spent selling away from the employer’s premises rather than on them. That is the fact the outside sales exemption turns on, and it is the one nobody thinks to record while it is happening.
Where this is decided
U.S. Department of Labor, Wage and Hour Division
Ask the Wage and Hour Division how the federal minimum wage applies to the work described, and whether the outside sales exemption covers it — that is the question this page cannot answer. The division enforces the federal floor, takes questions on 1-866-487-9243, and investigates complaints itself without an attorney. State rules sit on top of the federal floor, and a state labor department is the only place that can say what its own is.
Contact detailsSources read for this answer
- Field Operations Handbook, Chapter 30 — Records, Minimum Wage, and Payment of Wages, § 30b02 “Minimum rate of pay for non-overtime weeks”
U.S. Department of Labor, Wage and Hour Division · FOH Modernization revision 728, published 11/17/2016 · read September 10, 2026
https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/FOH_Ch30.pdf
- Handy Reference Guide to the Fair Labor Standards Act
U.S. Department of Labor, Wage and Hour Division · Revised November 2023 · read September 10, 2026
https://www.dol.gov/agencies/whd/compliance-assistance/handy-reference-guide-flsa
- Fact Sheet #17F: Exemption for Outside Sales Employees Under the Fair Labor Standards Act (FLSA)
U.S. Department of Labor, Wage and Hour Division · Revised August 2024 · read September 10, 2026
https://www.dol.gov/agencies/whd/fact-sheets/17f-overtime-outside-sales
- Fact Sheet #20: Employees Paid Commissions By Retail Establishments Who Are Exempt Under Section 7(i) From Overtime Under The FLSA
U.S. Department of Labor, Wage and Hour Division · Revised July 2008 · read September 10, 2026
https://www.dol.gov/agencies/whd/fact-sheets/20-flsa-commissions-retail
About this answer
What is written above is general information about a rule that exists. It is not written about anybody's particular job.
It does not say what any particular employer owes anyone. That turns on facts this page has never seen — the hours, the agreement, the state the work was done in — and on how somebody with the authority to decide reads them.
Rules differ from one state to the next, and they change. Every quotation above says what that document said on the date printed beside it, which is not the same as saying what it says today.
Where anything on this page and the official source disagree, the official source is the one that counts. The office named further up decides; this page only points at it.
Whichever way that goes, the thing an agency, a union or an attorney asks for first is a dated record of what actually happened, written down while it was happening.
Keep your own record of it
The hours actually worked in a week, beside everything that week paid — commission, any draw, any base. And where the selling happened, which is the fact the outside sales exemption turns on and the one nobody records at the time.
Start a record of the weeksFree to start, and no account until you choose to keep it. Private to you — nobody is contacted or notified.