Sales Commissions

News & Analysis as of

Financial Services Industry: Be Aware of Proposed White Collar Overtime Regulations

The financial services area received a defeat earlier this year when the United States Supreme Court in March upheld the Department of Labor's (DOL) Administrative Interpretation concluding that mortgage loan officers do not...more

Do You Need to Pay Minimum Wage or Overtime to Your Commission-Paid Employees?

Companies will sometimes take a chance on a new (or old) salesperson by allowing him/her to work on pure commission. This “eat what you kill” compensation system seemingly creates an incentive to sell with little risk to the...more

5 Bad Hiring & Firing Ideas Every Startup Entrepreneur Should Avoid

So, you think you have the next greatest idea for a startup that will knock the socks off of the current big players in your space? We know you’re excited to spend endless nights and countless hours to get your company off...more

Rate Parity Under Attack

Over the last decade, Online Travel Agents (“OTAs”), such as Expedia, Travelocity, and, have gained enormous market power. The OTAs have advertising budgets that dwarf those of most hotels, and they benefit from...more

5 Bad Hiring & Firing Ideas Every Startup Entrepreneur Should Avoid

Five common employment-related mistakes startups make when launching their business (and why to avoid them before things get costly)....more

Should Voluntary Overtime Be Included When Calculating Holiday Pay?

Another decision has been handed down to clarify – or complicate – the position on which aspects of pay should be included when calculating an employee’s entitlement to holiday pay. The Court of Appeal in Northern...more

Commission-Based Salaries Require Careful Attention to FLSA Compliance

The FLSA requires employers pay employees the minimum wage, as well as overtime at 1.5 times the employee’s regular rate of pay, to those who work more than 40 hours in a workweek. These requirements apply to all employees —...more

General Release May Not Preclude FLSA Claims Says Fifth Circuit

If I settle my employment lawsuit and release “all claims,” does that include wage-hour claims if the subject never came up? Last week, in Bodle, et al. v. TXL Mortgage Corporation, the Fifth Circuit said no....more

CFPB takes aim (again) at loan originator compensation

Two days after announcing a proposed consent order with a mortgage company and its CEO to settle charges that the company paid bonuses and higher commissions to loan officers in violation of the Regulation Z loan originator...more

Determining When a Commission is "Earned" When Calculating the Regular Rate

In our last post, we discussed the calculation of the “regular rate” and some of the complexities of determining what constitutes “remuneration” under the Fair Labor Standards Act (FLSA). Commission is one of the additional...more

Hot Topics in Wage and Hour Compliance

Employers should consider these recommendations for handling uniform purchase and maintenance costs, unpaid interns, and minimum wage requirements. UNIFORM PURCHASE AND MAINTENANCE COSTS Problem/Issue Employees...more

CFPB Orders Mortgage Originator to Pay $19 Million for Steering Violations – CEO to Pay $1 Million

The CFPB filed a complaint in federal district court against RPM Mortgage, Inc. and its CEO, Erwin Robert Hirt, for illegally paying bonuses and higher commissions to loan originators to incentivize them to steer consumers...more

Levi Strauss and Auditing of Third Parties

Today we celebrate innovation. On this day in 1873, a patent to create work pants reinforced with metal rivets was granted. This marked the birth of one of the world’s most famous garments: the blue jeans. Jacob Davis, a...more

Appellate Court Notes

- AC34886 - State v. Bush - AC35418 - State v. LaFleur - AC36275 - North Star Contracting Corp. v. Albright This case dealt with who is the proper party to bring a shareholder derivative action. A...more

Tough Sell for Bechtel: American General Files Suit in Florida

On January 29, 2015, American General Life Insurance Company filed a complaint against Kevin H. Bechtel and Life Brokerage Partners, LLC, in the United States District Court for the Middle District of Florida, Tampa Division....more

Uncharted Territory: Seattle’s $15 Minimum Wage Ordinance

The City of Seattle’s Minimum Wage Ordinance is set to take effect April 1, 2015.  When it does, Seattle will have the highest minimum wage in the nation, outpacing larger metropolises like San Francisco and New York City....more

New Year’s Resolutions for the California HR Manager

So what’s it going to be for 2015? Get up and run three miles every morning? Finally pay off those credit cards? Learn to speak French? Before you finish the list of New Year’s resolutions, consider adding a few on the human...more

Report From Counsel: Insights and Developments in the Law - Fall 2014

In this Report: - Homeowners’ Insurance: The Devil Resides in the Details - “Cybersmear” Lawsuits - Age Discrimination in Employment - The Marital Deduction: A Valuable Estate Planning...more

No “Harmony,” No Arbitration

When AmeriPlan terminated contracts with numerous “independent business owners” (“IBOs”), four IBOs—who had achieved the rank of Sales Director and earned “lifetime residual income” through commissions from their own...more

Capped Commissions

As a sales representative for a computer software company, Richard received an annual salary and sales commissions as determined by a compensation plan that was part of his contract. There was a specific formula for how...more

Barclays Is Sanctioned By The FCA and The SEC

Barclays took a double hit from regulators yesterday. First the Financial Conduct Authority in the UK fined Barclays Bank Plc, about £38 million for putting £16.5 billion of client assets at risk. Then the SEC imposed a $15...more

California Supreme Court Limits the Use of California's Commissioned Salesperson Exemption

The California Supreme Court recently released an important decision regarding California's "commissioned salesperson" exemption. To qualify for this exemption to California's overtime laws, an employee must: (1) earn at...more

Employment Law: August 2014

California Supreme Court Weighs In On Commission Wages - Why it matters: Employers in California that pay commission wages should familiarize themselves with a new decision from the California Supreme Court limiting...more

FLSA Collective Action Waivers In Separation Agreements May Not Be Valid In 6th Circuit

Employees discharged as part of a company restructuring can participate in a collective action lawsuit for unpaid overtime wages under the Fair Labor Standards Act (FLSA) despite waiving their collective action rights in...more

Feds Get Technical! Technical! (Sung to Olivia Newton John’s “Let’s Get Physical” of course)

We already know that California’s exempt/non-exempt classification scheme is a complicated system of checks and balances that takes most employers the help of an attorney to traverse. Well, just so we don’t get overly...more

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