What compensation feature sets a minimum salary threshold that an employee is guaranteed to receive regardless of commission or piece-rate production volume?
ABase Salary Floor
BDraw Against Commission
CGuaranteed Minimum Pay
DHazard Pay
Explanation
• A Draw Against Commission provides sales employees with a guaranteed advance payment against expected future sales commissions.
• Recoverable draw requires repayment if earned commissions fall short; Non-recoverable draw is guaranteed pay retained by the employee.
• Protects workers during low seasonal sales cycles.
Exam Relevance
- Topic: Compensation & Benefits
- Subtopic: Sales Compensation

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