Sales Commissions

News & Analysis as of

California Supreme Court Splits From Federal Law on Commissioned Employee Exemption Compliance

On July 14, 2014, the California Supreme Court clarified the commissioned employee exemption from overtime under California law. In Peabody v. Time Warner Cable, Inc., the court confirmed that calculations necessary to...more

California Supreme Court Ruling Limits Commission Wage Allocation

On June 14, 2014, the California Supreme Court held that employers could not satisfy California’s compensation requirements for the commission sales exemption by attributing commission wages paid in one pay period to other...more

California Employers May Not Allocate Commissions Paid In One Pay Period To Different Pay Periods To Satisfy California Wage And...

The California Supreme Court recently considered whether an employer may allocate an employee's commission wages from one pay period to other pay periods in order to meet the commissioned employee overtime exemption. (Susan...more

California Supreme Court Clarifies Requirements of Commissioned Employee Exemption

In recent years there has been substantial litigation regarding whether and how employers may satisfy California minimum wage requirements for compensation plans involving commissions. In Peabody v. Time Warner Cable, Inc.,...more

Real estate salesperson succeeds in mission to collect commission

A.R.S. § 32-2152 allows a real estate broker or salesperson to file a court action to collect earned compensation if he was a “qualified licensed broker or salesperson at the time the claim arose.” In Focus Point Prop., LLC...more

Commission-Based Sales Agreements for Medical Supplies and Equipment: More Whistleblower Activity on the Horizon? - A Wide Range...

The common industry practice of compensating independent contractor sales representatives on a "percentage of sales" commission basis may be creating an enhanced risk of False Claims Act liability for illegal kickbacks in...more

Latest CFPB RESPA Enforcement Action Targets Employee Referrals

Last week, the CFPB announced its latest RESPA enforcement action, adding to one of the CFPB’s most active areas of enforcement. In this case, the CFPB required a New Jersey title company to pay $30,000 for allegedly paying...more

Holiday Pay in the United Kingdom: Commissions Must Be Included

The European Court of Justice recently issued a decision about the calculation of holiday pay which will have potentially important consequences for employers. In British Gas v Lock, the Court held that holiday pay in respect...more

Holiday pay must include commission, ECJ rules

Kate Hodgkiss, Partner in the Edinburgh office, comments: The European Court of Justice (ECJ) has today handed down judgment in a case which could mean that employers face huge liabilities for claims for holiday pay. The...more

Court Rules Commercial Real Estate Broker Can’t Collect Commission Because Of Involvement Of Unlicensed Salesperson

Last month, the U.S. District Court for the Eastern District of Virginia held that a state-licensed real estate company was unable to collect its commission on a real estate lease transaction because a key employee involved...more

Tax Reform Proposal Takes Aim at Executive Compensation

On February 26, 2014, U.S. Congressman Dave Camp released a comprehensive tax reform proposal that includes several provisions intended to limit or restrict executive compensation. Congressman Camp’s proposal includes the...more

Finders Are Not Always Keepers!

Your good client, Avery Phillips, Chairman of the Board, calls you because he is considering engaging a friend, Tepper, to identify potential investors for his company. Phillips explains that Tepper has extensive business...more

Employment Law Bulletin: Auditing your practices to avoid wage-and-hour claims in Florida

"Florida is a hotbed of wage-and-hour litigation,” is repeatedly quoted in one report after another over the past year, and this trend is expected to continue throughout 2014. Here is a quick roadmap of compliance questions...more

GlaxoSmithKline Announces Further Limits on Payments to Physicians and on Sales Compensation

GlaxoSmithKline (“GSK” or the “Company”) announced yesterday that it will stop paying health care professionals to promote its drug products and will no longer tie the compensation of its worldwide sales force to individual...more

"UK Regulators Begin the Shake-Up of Asset Managers’ Use of Dealing Commission"

On 25 November 2013, the U.K.’s Financial Conduct Authority (the FCA) issued a consultation paper proposing new rules to clarify the circumstances in which U.K. asset managers can currently pay dealing commission (CP13/17)....more

Employment Law Commentary -- Volume 25, Issue 9 -- September 2013: Where Average Isn’t Good Enough: California Courts Continue to...

Employers who pay non-exempt employees solely on a commissions or piece-rate basis probably know by now that doing so in California is an increasingly risky proposition. Over the past few years, various California courts have...more

California Increases Minimum Wage Next Year

Governor Jerry Brown recently signed into law a bill that will increase California’s minimum wage in two phases. Beginning July 1, 2014, the minimum wage for California employees will rise from the current $8 per hour to $9...more

CFPB files lawsuit challenging loan officer bonuses

It appears the CFPB wants to send a warning through the lawsuit it filed yesterday in a Utah federal court against a mortgage company and two of its officers for allegedly paying illegal bonuses to loan officers that were...more

Show Me The Money – Employee Compensation To Prevent Bribery And Corruption

The GlaxoSmithKline PLC (GSK) matter continues to resonate across the compliance world. ...more

FHFA Proposes Ban On Lender-Placed Insurance Sales Commission And Reinsurance Activities

On March 26, the FHFA released a notice seeking comment on certain restrictions it expects Fannie Mae and Freddie Mac (the Enterprises) will put in place with regard to lender placed insurance practices. The FHFA anticipates...more

Recent Decisions Illustrate Strict Interpretation of Massachusetts Wage Act

Two recent decisions from Massachusetts courts again highlight the strict requirements of the Massachusetts Wage Act, which details how and when employees must be paid. The cases address the treatment of sales commissions and...more

No Sale -- Sales Commissions Violate Anti-Kickback Statute; Prevent Enforcement of Nonsolicitation

A durable medical equipment (DME) distributor, Joint Technology, Inc., entered into an agreement to pay a salesman commissions ranging from 18 to 22 percent on the volume of his sales. The court held that the salesman did not...more

New Jersey Department of Banking and Insurance Clarifies Restrictions on the Payment of Commissions, Rebates and Other Inducements...

The New Jersey Department of Banking and Insurance ("NJDOBI") issued a Bulletin to title insurance companies and producers and to real estate brokers, broker-salespersons and salespersons advising them of the restrictions on...more

Court Grants Summary Judgment For Non-Moving Party In Sales Representative Dispute

When deciding whether to file a summary judgment motion, attorneys should be careful to consider the possibility that the court may choose to enter summary judgment in favor of the non-moving party. This is what recently...more

Employment Law Newsletter: February 2013

In this issue: -Inspection of Personnel Records (AB 2674) -Wage Statements (AB1744) -Disclosure of Social Media Passwords (AB 1844) -Criminal History Information Requirements (AB 2343) -Human...more

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