All tagged recoverable draws

On the commission side of our graph (see the article from September 2023), we are moving toward using some sort of “goal” to affect payout, rather than simply paying a straight commission from the first dollar.  One of the ways companies initially think of doing this is by deducting the salary or a “seat cost” from the commission calculation.  This ensures that commissions are not paid until the employee as covered their costs to the organization, which is usually an approach that CFO’s like… a lot.  And it can have it’s place in an organization, particularly when it is just starting up.  However, it does have some downsides.

For those of you who remember, in 2016 the DOL created quite a stir by proposing a raise to the salary test for overtime exemption. The raise was quite high, more than 2x the current rate, and caused many companies to seriously reevaluate whether they needed to raise salaries to meet this new standard or reclassify employees as non-exempt (meaning they must be paid overtime). The new salary threshold that will go into effect January 1, 2020 is…