Texas law regarding compensation for employees earning solely through commissions centers around compliance with federal Fair Labor Standards Act (FLSA) regulations. These regulations stipulate requirements for minimum wage, overtime pay, and recordkeeping. A critical element for employers in Texas is ensuring that commission-based employees consistently earn at least the federal minimum wage for all hours worked. For example, if an employee’s commissions in a given pay period do not reach the minimum wage equivalent for their hours worked, the employer must make up the difference.
Proper application of these regulations is crucial for maintaining a fair and legally compliant workplace. Adhering to these standards protects employees from wage violations, ensuring they receive legally mandated compensation. Conversely, employers who fail to comply risk facing penalties and legal action. Historically, the development and evolution of wage and hour laws reflect a broader societal effort to protect workers’ rights and establish fair labor practices. These protections aim to create a level playing field, preventing exploitation and promoting economic stability for individuals dependent on commission-based earnings.