Boss Makes Sales Rep Hourly After Commission Cap, Rep Finds A Way To Make $2K More

When a company makes a questionable decision, it’s easy for employees to feel stuck. That’s exactly what happened when a sales rep learned that after hitting their commission cap, they were suddenly paid hourly instead of salary.

However, instead of walking away, this employee chose to turn the situation into an opportunity, discovering that the system could be worked to their advantage.

By tweaking their schedule just a bit and racking up overtime, they ended up making far more than anticipated, much to the company’s dismay. Keep reading to find out how this clever employee turned an unpleasant situation into a financial windfall.

A sales rep switched from a salary to hourly without notice to prevent post-commission coasting

In this scenario, an inside sales representative negotiated a “salary + commission” structure that the employer later altered by changing him to an hourly rate.

The shift in classification reportedly was tied to the company’s concern that, once the rep reached his capped commission, he might reduce outbound efforts, thus affecting sales volume. The rep responded by working significantly longer hours and generating overtime pay, turning what the employer hoped would limit costs into increased compensation.

From a legal standpoint, the Fair Labor Standards Act (FLSA) mandates that most non‑exempt employees be paid at least the federal minimum wage and receive overtime pay (at one and one‑half their regular rate) for hours worked beyond 40 in a workweek.

The distinction between salaried (often “exempt”) and hourly (typically “non‑exempt”) is not merely one of payment form, it depends on job duties, salary basis, and eligibility for overtime. DOL

The company’s reclassification raises key compliance issues. If the role was originally described as a “salary plus commission” and aligned with expectations of outbound hunting of new business, reducing that to an hourly rate (and presumably subjecting the rep to overtime eligibility) disrupted the initial agreement and may reflect unfair labor practice.

The rep’s discovery of an hourly rate ($21/hr) and subsequent accrual of significant overtime suggests the company may have mis‑classified the role or changed the basis of compensation without fully accounting for overtime risk.

Behaviorally, the sales rep’s “malicious compliance” with the hourly system is ironic: rather than reducing effort after commission cap, he intensified hours to benefit from overtime, arguably performing his job as defined (hunting and servicing) but under the newly imposed structure.

This shift draws attention to how compensation design can influence behavior: if commission caps discourage further activity, hourly eligibility for overtime inadvertently incentivizes overtime work.

From a practical advice perspective:

Employers should provide clear, documented compensation structures, particularly before employment begins. Changes from salary to hourly or vice versa should be clearly communicated and legally compliant.

Employees should monitor classification (exempt vs non‑exempt), hours worked, and whether the employer’s expectations align with the compensation plan. If capped commissions disincentivise effort, clarifying expectations in writing is wise.

Both sides benefit from transparent dialogue when roles evolve: if outbound “hunting” is expected after cap, a second tier of compensation or bonus may be more effective than shifting the pay basis.

Here’s the comments of Reddit users:

This group highlighted how common it is for companies to misunderstand or undervalue the role of salespeople

These commenters shared their own experiences with inefficient and exploitative pay structures in sales

This trio voiced their frustration with companies that cap commissions or impose arbitrary pay limits

These users pointed out how the sales industry can foster toxic attitudes due to commission structures that reward selfishness and lack of collaboration

These commenters echoed the idea that capping commissions is not only unfair but detrimental to the company’s growth and long-term success

Was the grind genius or grueling? Would you UI-claim faster, or cap-proof contracts? How do you commission-crush caps? Clock your capers below, we’re totaling the triumph!