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Employer Liability Issues Salespersons

Parker Poe Adams & Bernstein LLP

First Circuit Reminds Employers That Inside Sales Positions Are Non-Exempt

We frequently encounter situations where employers classify their salesforce that primarily sells through telephone and internet means as salaried exempt employees, primarily for purposes of overtime and minimum wage payment...more

Seyfarth Shaw LLP

Asking Again-Do You Really Want to Keep Paying Commissions to the Salesperson You Fired? (Update)

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We previously wrote about the procuring-cause doctrine here. As a refresher, the procuring-cause doctrine provides that a salesperson or other agent who contracts for a commission becomes entitled to payment of the commission...more

Epstein Becker & Green

First Circuit Upholds Employer’s Discretion to Reduce Commission Payments Under the Massachusetts Wage Act

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Psychologist Abraham Maslow once observed, “If the only tool you have is a hammer, it is tempting to treat everything as if it were a nail.” That sums up the state of commission litigation under the Massachusetts Wage Act:...more

Ervin Cohen & Jessup LLP

Court Rules Outside Salesperson Exemption Turns on Employer Control

Until recently, employers had the luxury of interpreting the outside salesperson exemption to minimum wage, overtime and meal and rest period requirements at face value. This is because the definition of an “outside...more

Tucker Arensberg, P.C.

PA Supreme Court Extends Employer Liability For Injury Sustained After Work Happy Hour

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The PA Supreme Court has extended the Workers’ Comp application of the “traveling employee” doctrine to include an employee’s attendance at happy hours, holiday parties and other social gatherings that are sponsored by the...more

Fisher Phillips

Too Many People, Not Enough Cars: 5 Considerations if Your Dealership Needs to Conduct Reductions-in-Force

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Until now, having a reduction-in-force in the sales department of a retail automotive dealership was about as rare as selling vehicles at MSRP. Thanks to a combination of factors, including the pandemic and the chip shortage,...more

Troutman Pepper

FLSA Exemptions for Outside Sales Employees in the Era of Social Distancing

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Q: Are outside sales employees considered exempt under the outside sales exemption (OSE) if they work from a home office during the pandemic? ...more

Snell & Wilmer

Can Companies Use the Outside Sales Exemption During a Pandemic?

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COVID-19 has altered the way nearly every employee performs their work. Videoconferencing and phone calls have largely replaced in-person visits and face-to-face meetings in many workplaces. By extension, many sales employees...more

Conn Kavanaugh

Beware of the Wage Act – Review Pay Plans for Commission Based Inside Salespersons and Stay Alert for Future Claims

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In early May, the Massachusetts Supreme Judicial Court held that 100% commission-based inside salespersons are entitled to separate, additional overtime pay and premium pay for Sunday work. The decision, Sullivan v. Sleepy’s...more

Proskauer - Law and the Workplace

Retail Salespeople Paid on Commission Are Entitled to Overtime and Sunday Pay, Massachusetts SJC Says

On May 8, 2019, Massachusetts’ highest court held that retail salespersons who are paid entirely on a commission or draw basis, may nevertheless be entitled to additional overtime or pay for work on Sundays. The Supreme...more

Jackson Lewis P.C.

Commission-Only Inside Salespersons Are Entitled To Overtime And Sunday Pay Under Massachusetts Law

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Adhering to the “plain and ordinary” language of the state’s overtime statute and related regulations, the Massachusetts Supreme Judicial Court has held that inside sales employees paid on a 100% commission basis are...more

Seyfarth Shaw LLP

Employment Tips For The Pharmaceutical, Biotech, And Life Science Industries - Part 2

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Tip #2: Thorny Issues with Commissions Part 1: What Happens When a Salesperson Is Selling a Drug To Herself or Her Family Member? A key component of compensation for pharmaceutical salespeople is the sales commission, and...more

Akerman LLP - HR Defense

Don’t Sell Your Company Short: Properly Classify Sales Employees

While certain sales employees are exempt from minimum wage and overtime requirements under federal and state laws, others are not. Getting it wrong can be a costly mistake, so employers are well advised to ensure their...more

Fisher Phillips

It Happened Again…

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WARNING: If you are a regular recipient of the Dealership Update or a Fisher Phillips client, chances are that you will not necessarily learn anything new by reading this article. When you hear that a dealership settled a...more

Butler Snow LLP

Hospital Not Liable For Retaliatory Discharge

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A recent decision by the Court of Appeals of Tennessee, in which the employer prevailed in a retaliatory discharge claim, demonstrates the importance of (1) maintaining confidentiality of workplace investigations and (2)...more

Fisher Phillips

When Must Commissions Be Paid?

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Many wage laws and jurisdictions give deference to employment agreements or even past employer practices when determining when commissions are "earned" by an employee and must be "paid" by an employer. As a recent decision...more

Bradley Arant Boult Cummings LLP

Bright Future in Sales? The Outside Salesperson FLSA Exemption

With minimum wage increasing at federal, state, and local levels and with wage and hour cases on the rise, we receive many questions about exemptions to overtime laws. One such exemption that does not get as much coverage as...more

Foley & Lardner LLP

When is a “Bonus” Really a “Commission”? A Helpful Reminder to Ensure Your Pay Plans Comply with State Laws

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In the past, we have highlighted some of the legal risks of employing commission-based employees, as well as some of the methods for limiting those risks. A new court decision out of Illinois provides a good reminder that...more

Fisher Phillips

Serenity Now – Looking Back On USDOL's Actions Mid-Year, And A Sneak Peek At What Might Be Coming

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We are almost half way through 2018, and this year has been filled with fast and furious changes at USDOL. Proposed tip credit changes (Check, including a reaction from Congress and more tip credit changes on the horizon)....more

Fisher Phillips

E=mc2 - What Einstein Can Teach Your Dealership About Drafting Pay Plans

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I bet you’ve heard of the famous equation E=mc2. You may know that Albert Einstein is credited as its developer. You may even know that it’s often called the Theory of Relativity. But, like most people, you might not know...more

Spilman Thomas & Battle, PLLC

SuperVision - Labor & Employment Law Insights - Issue 1, April 2018

In this issue of SuperVision, Spencer Cook examines one of the offshoots of the #MeToo movement--the tax ramifications of settling harassment lawsuits. Mitch Rhein explores a recent Supreme Court decision redefining the...more

Akin Gump Strauss Hauer & Feld LLP

California Commissioned Salespersons May Be Entitled to Separate Compensation for Wide Range of Activities in Addition to Rest...

Commissioned salespersons are employed in a variety of industries. While “outside salespeople” are generally exempt from minimum wage and meal and rest break requirements, so-called “inside” salespeople working at a retail...more

Zuckerman Spaeder LLP

Sales Representative Who Was Paid $900,000 Can Still Claim Violation of Overtime Law, Says Federal Court

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Under federal law, employers must pay employees time-and-a-half if they work over 40 hours in a workweek, unless the employees are exempt from the overtime law. Employers don’t usually think of an employee who takes home...more

Fisher Phillips

Choice-of-Law and Choice-of-Forum May Depend on the Choice of Where to File and When: Multi-State Employers Continue to Face...

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Employers who operate in a multi-state environment should take note of a recent case out of the Sixth Circuit (which governs employers that operate in Kentucky, Michigan, Ohio, and Tennessee.) Stone Surgical, LLC v. Stryker...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Commissioned California Employees Must Be Separately Compensated for Rest Periods

On February 28, 2017, the California Court of Appeal issued a significant decision in Vaquero v. Stoneledge Furniture LLC (No. B269657). The decision, which was certified for publication, is the first ruling by a California...more

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