Gretchen is hired as a sales person, and her base salary will be minimum wage. However, she will earn a $200 commission for every sale she makes. Her new boss let her know that most salespeople at this firm average 8-10 sales a week except for the month of January when sales drop dramatically and do not pick up until mid-February or early March. Is this legal?
(1 point)
Responses
No, working on commission is illegal in many states.
No, working on commission is illegal in many states.
Yes, it pays minimum wage and commission income often varies.
Yes, it pays minimum wage and commission income often varies.
No, employers need to make sure that employees have a steady income.
No, employers need to make sure that employees have a steady income.
Yes, but this is a very usual arrangement for those who work on commission.
Yes, but this is a very usual arrangement for those who work on commission.
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No, working on commission is not illegal in many states. As long as Gretchen is being paid at least minimum wage and has the opportunity to earn additional income through commission, it is legal. The fact that sales drop in January is not necessarily illegal, as long as Gretchen has the opportunity to still earn commission when sales pick up again. It is not uncommon for commission-based jobs to have fluctuating income based on sales performance.
Question
If an employer offers to hire you but explains that you will have to start out at a lesser training wage for the first two months before you move to minimum wage, is this legal?
(1 point)
Responses
No, a training wage is only legal for the first few weeks.
No, a training wage is only legal for the first few weeks.
No, hiring anyone for less than minimum wage is illegal.
No, hiring anyone for less than minimum wage is illegal.
Yes, if you do not have the skills for the job you do not get the full wage.
Yes, if you do not have the skills for the job you do not get the full wage.
Yes, as long as you agree to it since the employee must consent to lower wages.
Yes, as long as you agree to it since the employee must consent to lower wages.
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No, hiring anyone for less than minimum wage is illegal. In most cases, employers are required to pay employees at least the minimum wage set by federal or state law. Offering a training wage for the first few weeks may be legal in some situations, but consistently paying less than minimum wage is generally illegal. Employees should be paid fairly for the work they are doing, regardless of their level of experience or training.
Gretchen is hired as a sales person, and her base salary will be minimum wage. However, she will earn a $200 commission for every sale she makes. Her new boss let her know that most salespeople at this firm average 8-10 sales a week except for the month of January when sales drop dramatically and do not pick up until mid-February or early March. How will this impact Gretchen’s personal budget?
(1 point)
Responses
She cannot create a budget since her earning will vary a lot.
She cannot create a budget since her earning will vary a lot.
She should create a budget when she can live on minimum wage.
She should create a budget when she can live on minimum wage.
She needs to save money for the weeks when commissions are low.
She needs to save money for the weeks when commissions are low.
She should assume that she will earn eight commissions a week all year.
She should assume that she will earn eight commissions a week all year.
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She needs to save money for the weeks when commissions are low. Since Gretchen's income will vary based on the number of sales she makes, she should create a budget that takes into account the fluctuating nature of her commissions. During the slow sales months like January, she should focus on saving money to cover her expenses during those times when her commission income is lower than usual. Planning for these fluctuations in income will help Gretchen to manage her personal budget effectively.
Question
Omar is offered a job with a salary of $42,000. He will get medical benefits, dental benefits, and contributions to his retirement worth $12,000 a year. How much is his annual gross pay?
(1 point)
Responses
$30,000
$30,000
$42,000
$42,000
$50,000
$50,000
$64,000
$64,000
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$54,000
To calculate Omar's annual gross pay, we add his base salary of $42,000 to the value of his medical benefits, dental benefits, and retirement contributions, which is $12,000. Therefore, his annual gross pay is $42,000 + $12,000 = $54,000.
Osi was hired by a large corporation and given a salary of $100,000. She was told that last year employees made an average of $25,000 in bonuses since all departments met or exceeded their earnings. After her first quarter, she found out that there was no bonus for her department because sales were down in her division by 2 percent even though her sales met the quota. Is this legal?
(1 point)
Responses
No, bonuses part of total compensation, so there is a minimum payment.
No, bonuses part of total compensation, so there is a minimum payment.
No, if bonuses are mentioned as one of the benefits, the company has to pay them.
No, if bonuses are mentioned as one of the benefits, the company has to pay them.
Yes, there is no guarantee that any employee will get a bonus even if it is common.
Yes, there is no guarantee that any employee will get a bonus even if it is common.
Yes, because she can get twice as much next quarter if her division improves sales.
Yes, because she can get twice as much next quarter if her division improves sales.
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No, if bonuses are mentioned as one of the benefits, the company has to pay them. If bonuses are part of the compensation package offered to the employee and are commonly paid out based on achieving certain performance metrics, the company would typically be obligated to pay them as agreed. Osi should review her employment contract or agreement to clarify the bonus structure and whether there are any conditions tied to receiving bonuses.
Under which circumstances do tipped employees have to pay taxes on their tips?
(1 point)
Responses
They are always required to report tips as income.
They are always required to report tips as income.
They earn less than minimum wage, even with tips.
They earn less than minimum wage, even with tips.
The state that they work in pays less than minimum wage.
The state that they work in pays less than minimum wage.
If some customers do not tip, they do not have report tip income