Ala. Admin. Code r. 480-4-3-.25

Current through Register Vol. 43, No. 1, October 31, 2024

Section 480-4-3-.25 - Benefit Eligibility As Affected By Commission Work

(1) Commission work is disqualifying under Section 25-4-71, which reads in relevant part, "wages are deemed to be payable to an individual working on a commission basis with respect to each week in which he works". This sentence is interpreted to mean that an individual who is working on a commission basis and performs any services during a week is not, according to this section of the law, unemployed during that week, notwithstanding the fact that he may have worked less than full time and regardless of the amount of commissions earned.

(2) Commission is work usually associated with the sale of goods or services. In a typical commission sales situation, title to and ownership of the goods never pass to the commission agent. Ownership of the goods always remains with the principal until sold even though the claimant may be in actual possession of the goods. The claimant is, in such cases, acting as an agent on behalf of his principal in negotiating an agreement between his principal and the purchaser.

(3) In some situations, a commission rather than an hourly or weekly wage rate is the method used for computing the amount of remuneration for the performance of personal services in accordance with an otherwise ordinary contract of employment which establishes the hours of work. In other situations a minimum payment is guaranteed by the contract for commission sales. The commission work basis for disqualification does not apply in such cases. It applies only where a commission is the sole method of payment and the individual is more or less free to establish his own hours of work and therefore presumably can work as much or as little as he desires.

(4) Commission work, like ability to work and availability for work, is determined on a week-to-week basis.

Author: Joan Hinson, Chief of Benefits

Ala. Admin. Code r. 480-4-3-.25

Effective March 18, 1993.

Statutory Authority:Code of Ala. 1975, §§ 25-2-7, 25-2-8, 25-4-111, 25-4-78.