As summer begins to all but fade into the background, it is a good time to revisit legal compliance with state and federal requirements in the employment context. Massachusetts recently joined the growing wave of states to...more
The recent cyberattack that took down CDK Global’s software platform has left dealers scrambling to continue operations. While the immediate focus may have been the potential breach of customer data and the ability to...more
When litigating claims under the federal Fair Labor Standards Act (FLSA), litigants are aware of long-standing case law that essentially awards a prevailing plaintiff with their attorneys’ fees absent extraordinary...more
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
On March 28, 2024, in Sutton v. Jordan’s Furniture, Inc., the Massachusetts Supreme Judicial Court (SJC) upheld a Massachusetts Superior Court decision finding the furniture retailer’s commission-based compensation scheme...more
If you answered no, then you’d better have the records needed to prove the number of overtime hours worked by your employees and the rates paid for them. If you don’t have the records, then borrowing a rhyme from the legal...more
In Klauber v. VMWare, the First Circuit upheld an employer’s use of a provision in its compensation plan that allowed it to modify commissions on certain large or atypical sales. These “windfall” clauses are common in sales...more
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
In a recent decision in Kennedy v. Weichert Co., the New Jersey Appellate Division concluded that the “ABC Test” under the Unemployment Compensation Law is inapplicable in determining a real estate salesperson status an...more
Although the plaintiff cable technicians, who were paid by the completed job and not by the hour, were covered employees under the Fair Labor Standards Act (FLSA), they nonetheless were bona fide commissioned employees and...more
The Colorado Department of Labor and Employment (CDLE) has been busy this summer with the release of several Interpretive Notice & Formal Opinions (INFOs), providing guidance on the evolving landscape of Colorado...more
Reversing summary judgment in favor of the U.S. Department of Labor (DOL), the Eighth Circuit has held that jury questions exist as to whether the defendant employed drivers who provide non-emergency medical transport...more
Second of two on the FLSA. NOTE FROM ROBIN: In March, I began a series of very basic explanations of the federal laws that govern the workplace. The first installment covered discrimination in general, the second...more
The Texas Supreme Court recently established a “default rule” which, as the dissent puts it, may “threaten the expectations of Texas at-will employers and employees who have agreed to a commission structure but, for whatever...more
Although it involves Texas law, a recent case illustrates the pitfalls that an employer can face when a former employee makes a claim for commissions or compensation after their employment has ended. It also offers...more
Several years ago, the payment structure for numerous salon and spa employees was turned on its head, as these salons and spas faced liability for paying employees a commission when they were not involved in sales. ...more
The notorious “ABC” test continues to rear its head across the nation. This strict, worker-friendly test that is used to determine whether a worker is properly classified as an independent contractor as opposed to an employee...more
I have handled many commission cases, where someone sues, claiming they are owed commissions. The key issue in such cases is to determine if there is a written contract and then to ascertain what the vesting provisions for...more
Relying on the parties’ written employment agreement and compensation plans, a California federal district court held that an at-will employee who was laid off due to COVID-19 could not recover commissions that were not fully...more
Although the employer’s pay system for its auto repair technicians was complicated and at times redundant, it nevertheless constituted a bona fide commissions compensation method subject to exemption from the overtime pay...more
On June 14, 2021, the Fifth Circuit issued a decision providing an important reminder: after a case is removed to federal court, make sure your pleadings comply with the federal rules....more
Uber will officially classify its British drivers, all 70,000 of them, as “workers” following a “major legal defeat” for the ride-hailing company in the British Supreme Court last month. The move entitles the drivers to “a...more
Under California law, an employee is exempt from California’s overtime requirements and other wage and hour laws if the person is employed in an administrative capacity. To meet this exemption, California’s wage orders and...more
The plaintiff sought more than $12,000 in unpaid wages on his FLSA claims, rejected the defendant employer’s Rule 68 offer of judgment of $3,500 on those claims, and then was awarded only $97.20 plus an equal amount of...more
Two of the more complicated areas of California wage-and-hour law involve commission plans and overtime exemptions. Commission plans are complex animals – long gone are the days where Joey gets 5 cents for each widget he...more