Legal Alert: Watch Out Employers of Commissioned Sales People in New Jersey – They're No Longer Exempt


In a development that could significantly impact employers in New Jersey, the state's Department of Labor (DOL) recently amended the regulations interpreting New Jersey's wage and hour laws and, in doing so, appears to have eliminated the commissioned sales exemption under state law.

Recently, the New Jersey DOL amended its wage and hour regulations to follow the federal regulations. In doing so New Jersey changed the language of its regulations to adopt the Fair Labor Standards Act's (FLSA) white collar exemptions located at 29 CFR 541. The amended regulation reads: "Except as set forth in (b) below, [addressing government employees] the provisions of 29 CFR Part 541 are adopted herein by reference."

The FLSA's exemptions listed at Part 541 are known as the "white collar" exemptions and include the administrative, executive, professional and outside sales exemptions. The commissioned sales exemption, often referred to as the "inside sales" or "retail sales" exemption is not a white collar exemption and is therefore not discussed in 29 CFR Part 541.

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