Is PRP Wine International paying its employees illegally?

So according to the IRS your answer is yes. I would do something about that.

The only way to avoid being paid minimum wage and overtime is to be an independent contractor.

It's just like serving. You get paid less than min wage plus your tips (tips in the eyes of the IRS are considered a commission payment)

When you do not average min wage with your tips, the company must make up the difference.

So if you are working 20-40 hours a week you should be getting paid your states min wage per hour you worked in office. Also it is quite possible you may be due wages for the actual wine tastings you do, since you are conducting business as a service technician would be when they are on call.

Assuming you are NOT legally selling the wine at the tastings, just presenting it. (Outside sales people cannot collect wages for those hours)

Wine tasters from outside companies at wine shops and grocery stores get paid per hour wages, because they are actually not selling the wine, just demonstrating product knowledge.

Carrie Glossmanz, eHow Contributor

AS with any other type of business, the rights of commission-only employees are governed by the Fair Labor Standards Act (FLSA). This guarantees that workers must be paid at least the standards for minimum wage and overtime.

IRS Website: Tax Withholding Commissions

The federal income tax is a pay-as-you-go tax. There are two ways to pay as you go.

Withholding. If you are an employee, your employer probably withholds income tax from your pay. Tax may also be withheld from certain other income — including pensions, bonuses, commissions, and gambling winnings. In each case, the amount withheld is paid to the IRS in your name.

IRS Website: Salaries and Wages, Bonuses, Commissions,

Income tax is withheld from the pay of most employees. Your pay includes your regular pay, bonuses, commissions, and vacation allowances. It also includes reimbursements and other expense allowances paid under a non-accountable plan. See Supplemental Wages, later, for more information about reimbursements and allowances paid under a non-accountable plan.

Minimum Wage

Employees must guarantee that their employees working on a commission-only basis earn the equivalent of minimum wage. This means that if their employee works a certain number of hours in a given pay period and earns less through commissions than they would have been paid working the same amount of hours for minimum wage, the employer must pay the employee the monetary difference.

Overtime

According to the FLSA, employers working on a commission basis are entitled to overtime compensation if they work more than 40 hours in a week. The overtime rate must be at least 1.5 times their standard pay rate, including commissions. An employer may claim exemption for paying overtime for a commission-only employee if it is part of a retail or service business, the worker's pay rate during the overtime week already exceeds 1.5 times her standard pay rate and half or more of the worker's earnings are made through commissions.

Eligibility

Workers whose pay is based entirely on a business' profit are considered commission-only workers and entitled to the wage and overtime benefits. This includes workers who work on a piece rate. While workers who engage in outside sales may work entirely on a commissions-only basis, outside sales workers who work exclusively outside the business' building are exempt from the minimum wage and overtime requirements.