Sales Commissions Wage and Hour

News & Analysis as of

Holiday pay includes commission (unsurprisingly)

The eagerly-awaited Court of Appeal decision in British Gas v Lock has now been handed down. The hope for this decision was twofold: that it would clarify whether or not holiday pay should take into account commission...more

What Is The Section 7(i) Exemption And Does It Apply To Auto Dealer Service Advisers?

Over the summer, the U.S. Supreme Court punted on the question of whether “Service Advisers” or “Service Writers” at auto dealerships fall within the Fair Labor Standards Act’s exemption for “any salesman, partsman, or...more

100 Days Until the New Overtime Rule Takes Effect: Is Your Company Ready?

On December 1, 2016, the annual cost of classifying most executive, administrative, or professional employees as “exempt” from the overtime rules more than doubles ($23,660 to $47,476). Is your company ready for this change?...more

Connecticut Supreme Court Reaffirms the Right of an Employer to Determine When Commissions Are Paid

As a general proposition, under Connecticut law an employer has the right to determine the wage that will be paid for work performed by an employee, subject to basic requirements such as minimum wage or overtime. For wages...more

Supreme Court Passes Automobile Dealership Service Advisor Exemption Issue Back to Lower Court

On June 20, 2016, the U.S. Supreme Court declined to provide a definitive opinion on a pay issue that has concerned automobile dealerships for years. The question involves whether dealership service advisors fall under the...more

What Bonuses and Incentive Payments Count As "Discretionary" Under The New Exemption Rules?

One of the more surprising changes in the new FLSA overtime exemption rules is a provision allowing  certain bonuses, commissions, and incentive pay to count for up to 10% of the new increased minimum salary level. However,...more

A Month in UK Employment Law - April 2016

News & Legislation Update - Gender Pay Gap Reporting Draft Regulations published - The first draft of regulations requiring any employer in the UK with at least 250 employees to publish information about the...more

First Circuit Approves Use of FWW Method for Pay That Varies Due to Performance-Based Commissions

The First Circuit Court of Appeals recently affirmed a lower court’s decision that an employer may use the fluctuating workweek method to calculate overtime pay rates even when an employee’s weekly pay varies because of...more

Affirming Common Sense: Appeals Court Rejects Plaintiff’s “Two Rights Make A Wrong” Theory Involving Fluctuating Workweek Method

The U.S. Court of Appeals for the First Circuit recently sided with an ever-increasing line of cases clarifying the type of payments that may be added to a fixed salary without violating the fluctuating workweek method...more

Results Based Commissions and Holiday Pay in the UK

The Employment Appeal Tribunal has today issued its judgment in the case of Lock v British Gas in which it has confirmed that, in order to comply with EU law, the UK Working Time Regulations should be interpreted to provide...more

Corollary (and Coronary?) Ramifications Of the 2016 Minimum Wage Increase

The $10 state-wide minimum wage that hits us on January 1, 2016, will complicate things even more than the last increase. We previously reported here and here on the two-step legislation aimed to increase minimum wage...more

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

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

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

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

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

All Change for Holiday Pay?

The European Court of Justice (ECJ) has considered whether commission payments should be taken into account when calculating holiday pay in the recent case of Lock v British Gas Trading Limited (C-539/12)....more

The Commissioned Salesperson Exemption Just Got More Difficult to Establish

Many California employers rely on California's commissioned salesperson exemption from overtime for their inside sales employees. That exemption, however, is becoming increasingly difficult to establish. A recent decision...more

It’s Time to Revisit Commission Pay for California Employees: Commissions Earned Must be Paid Twice Per Month and the Commissioned...

You may have just started breathing easier after rolling out written commission agreements to comply with California Labor Code section 2751. However, a recent unanimous California Supreme Court decision has heads turning...more

Seeking Credit for Deferred Commissions? You Might Get Declined

Last week, the California Supreme Court issued its decision in Peabody v. Time Warner Cable, Inc., deciding that employers may not apply commission payments to earlier pay periods for the purposes of establishing that an...more

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