News & Analysis as of

Sales Commissions Wage and Hour Salespersons

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

Epstein Becker & Green on

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

Fox Rothschild LLP

Commissions Owed To Employee Depend On The Contract, Notwithstanding That Layoff Was Due To COVID-19 Issues

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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

Proskauer - Law and the Workplace

Wage and Hour Division Modifies Rules For FLSA’s Retail Sales Exemption

On May 19, 2020, the United States Department of Labor’s Wage and Hour Division (WHD) implemented a final rule withdrawing partial lists of establishments that it previously interpreted as either having “no retail concept” or...more

Woods Rogers

U.S. Department of Labor Expands Overtime Exemption for Commission-Based Employees of Retail or Service Establishments

Woods Rogers on

On May 18, 2020, the Wage and Hour Division of the U.S. Department of Labor (DOL) announced a new final rule to govern the determination of whether an employer qualifies as a “retail or service” establishment for purposes of...more

Parker Poe Adams & Bernstein LLP

U.S. Labor Department Expands Types of Businesses That Can Claim Retail Overtime Exemption

Section 7(i) of the Fair Labor Standards Act provides an exemption from the usual overtime pay requirements for certain commissioned employees of retail or service establishments. For decades, the U.S. Department of Labor has...more

Locke Lord LLP

Massachusetts’ Highest Court Holds that Employees Paid on Commissions are Entitled to Overtime and Sunday Pay

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Massachusetts law permits employers to pay inside salespeople on a commission only basis, provided that the employer guarantees at least the minimum wage for all regular hours worked. However, according to a recent decision...more

Foley & Lardner LLP

Court Says Massachusetts Commission-Only Inside Sales Employees Are Entitled to Separate Overtime and Sunday Premium Pay

Foley & Lardner LLP on

In a blow to employers, the Massachusetts Supreme Judicial Court (SJC) recently clarified the overtime and Sunday premium pay rights of non-exempt inside sales employees paid solely by commissions or advances on commissions,...more

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

Massachusetts Supreme Judicial Court Finds That Commissioned Salespeople Must Be Paid Overtime

On May 8, 2019, the Massachusetts Supreme Judicial Court (SJC) issued a unanimous opinion holding that salespeople who are paid solely on draws and commissions are entitled to separate and additional overtime and Sunday pay...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

Jackson Lewis P.C. on

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

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

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

Paying Most Sales Employees Purely on Draw and Commission No Longer Lawful In California

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Last month a California appellate court held that an employer violates California law by paying inside sales employees on a draw against commission. In Vaquero v. Stoneledge Furniture LLC, the court held that such a pay...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

Fisher Phillips

California Auto Dealers Beware: Commission-Paid Dealership Employees Entitled To Separate Rest Period Pay

Fisher Phillips on

A California appellate court ruled on February 28, 2017, that employees paid on a commission basis must be separately compensated for legally required rest periods (Vaquero v. Stoneledge Furniture LLC). Although this decision...more

Foley & Lardner LLP

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

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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

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