Can an employer give away employee services, without compensating them?

The answer, as in many legal matters, is, it depends. Since you did not say you are an independent contractor, I am assuming you are an employee who receives a form W-2. As an employee, you are subject to federal and state minimum wage requirements, and federal overtime laws. There is an exemption for commissioned employees in retail service establishments which would apply so long as more than half of your pay is by commission, and your regular hourly rate for any week in which you work over 40 hours is one and one half times minimum wage. To find you regular rate, you take the total amount you earned during the week (excluding tips) and divide it by the total number of hours you worked that week (add in the time you spent on ALL work, such as free sessions, miscellaneous duties, etc.).

Assuming the resulting rate is at least one and one half times minimum wage, then your employer has complied with the wage and hour laws, regardless of whether they have required you to perform other duties including participating in marketing activities such as free sessions.

There is no other law in Florida or under federal law which would prohibit your employer from assigning you these additional duties. You can complain to the employer that it is unfair, but so long as you are being compensated as described above, it is not illegal.

posted by Phyllis Towzey  |  Dec 28, 2011 08:35 AM [EST]