Are employment/commission contracts, that violate Oregon minimum wage laws, still valid?

Asked about 1 year ago - Portland, OR

I work at a salon. I am paid by hour & by commission. I reception part time at the salon & I get paid hourly for that. I am also paid hourly for the duration of every service I do on top of commission for said services. I also get commission for sale of merchandise. Business fluctuates so there is base wage at the salon, it is roughly what you get paid doing 40hrs work of work on min. wage(8.75/hr). The issue though is that I get paid every 2 weeks and each pay period is 80hrs of work, but the base wage only covers 40hrs of work. Which means I work for 160hrs every month but only get paid for half When I calculate my hourly wage from my gross pay it is way below min. wage. I signed a contract in order to work there, would this contract still be valid even if it violates min. wage law?

Attorney answers (1)

  1. David A Schuck

    Contributor Level 13


    Lawyer agrees

    Answered . Your fact pattern is a little confusing. Oregon's minimum wage requires that you make at least $8.95 (minimum wage) for every hour you work. A contract you sign wherein you agree to be paid less is irrelevant. Thus, for the two week period, you must receive at least $8.95 per hour if you add up the wages, commission, or any other money paid to you by the employer for your work. Tips are not included in this calculation. This is true under state and federal minimum wage laws. Under Oregon's minimum wage laws, there is an argument that each hour must be paid at least minimum wage. Thus, if some hours are paid at less than minimum wage, there is a violation.

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