Employers in California are required to pay employees a minimum wage per hour for all hours worked. However, there are many different exemptions for various jobs that may qualify for exemptions to minimum wage requirements and other regulatory requirements, such as lunch breaks and rest breaks.
The Outside Sales Exemption is an example. Any employee over the age of 18 who works more than half the working time away from the employer’s place of business to sell products or services, may qualify as outside sales exempt. The most common pay arrangement for employees who qualify for the outside sales exemption is a pure commission per sale or service completed. Under this exemption, employers do not have to pay employees any minimum amount of wages for all hours worked, do not have to pay overtime rates, do not have to provide lunch or rest breaks, etc. Although employers still have to pay employees whatever the agreed upon wages were for each sale completed.
(See Link(s): Labor Code Sections 1171 and 1182.12; and Industrial Commission Wage Orders)