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OT on Commission for Spa Employees

cpenncpenn 2 Posts
in Compensation Vote Up0Vote Down
We are a privately owned resort with a spa. How do I determine if we are a "retail or service establishment" under FLSA to determine if we are exempt from paying overtime on commissions for spa therapists? Are hotels still recognized under the law as a "retail or service establisment?" The majority of their pay comes from commissions on services. We meet the sales volume requirement of the definition and the amount of their commissions meets the definition for being exempt from overtime pay. The law is very confusing about the definition of a "retail or service establishment." Can anyone help?
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