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Top Five Things a Car Salesman Can Do to Protect His Paycheck

It can be tough for a car salesman, depending on the buying habits of others, to ensure getting a good paycheck.

The holidays can be rough, as customers focus more on buying toys for their kids rather than a new or used car for themselves.

But commissioned employees are protected under the Fair Labor Standards Act, as it prevents employers from exempting a commissioned employee from overtime pay in the event that the employee is not making at least 50% of his wages through commissioned sales.

The FLSA also mandates that the employee must make at least minimum wage in this situation. However, not all employers are aware of or follow these rules, and the result can mean hundreds or thousands of dollars of missed money from a car salesman’s paycheck.

This is why it is imperative that car salesman follow these five rules to protect their paychecks.

1. Always keep track of your hours worked. Even though they are required to under the FLSA, not all employers keep proper record of your hours worked. Even though you are not required to do so, keeping track of your own hours can help you prove your case later if there is a problem. 
2. Know your rights under the FLSA. Be aware of the fact that you are entitled to overtime pay and minimum wage in the months that you do not earn a commission that equates or exceeds 50% of your earnings 
3. Keep diligent track of your commissions. Many larger dealerships have intricate systems that will calculate your commissions for you after the sale of a car, but mistakes can happen. Knowing what your paycheck should say versus what it is can ensure that you are being properly compensated. 
4. Talk to your employer right when you are hired. Discussing your expectations and comparing them to his can help you both avoid a problem later on down the road. 
5. Contact an experienced Houston overtime lawyer who helps car salesmen if you feel there is a problem. You should not have to put up with unfair wage practices just because you are afraid that you will lose your job if you speak up. Talk to us – we can help.

Kennedy Hodges, LLP will also provide you with a free copy of our book, The Ten Biggest Mistakes That Can Hurt Your Wage and Overtime Claim by calling 888.449.2068 today. If you think you may be dealing with an unfair situation, you can also tell us about it by filling out our online form, and an attorney from our office will get right back with you to schedule a free consultation.