News & Analysis as of

CSLB Revamping its Home Improvement Salesperson Registration Process

CSLB Taking Steps to Implement New, Simplified Home Improvement Salespersons Registration Process SACRAMENTO — The Contractors State License Board (CSLB) is moving quickly to implement a new law that will simplify the...more

FRANCHISOR 101: Catch-all Disclaimers No Substitute for Untrained Salespeople

How strong are "non-reliance disclaimers" or "integration" or "merger" provisions in franchise agreements at protecting a franchisor when it really matters? Only so much, a New York court recently decided....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

Sales Professionals in Law Firms – Are We Finally Ready?

In recent decades, many firms have embraced the transition of certain administrative and management duties such as pricing, project management and process improvement from the attorneys to professional staff. Yet there is...more

How Insurance Industry Employers Can Navigate the New White-Collar Overtime Rules: Turning Legal Challenge Into Business...

As most insurance industry employers are probably aware by now, the Department of Labor has proposed revisions to its regulations that seek to further limit the instances in which certain employees may qualify as exempt from...more

The Role of Compensation Systems in Promoting Antibribery (Non) Compliance.

GAB is pleased to welcome back anti-bribery consultant Richard Bistrong, who contributes the following guest post: These days, most sophisticated multinational firms, at least those that might be subject to liability...more

Why "Side Agreements" with your Customers are a Bad Idea

Your Sales and F&I teams are probably willing to go the “extra mile” to close a sale with a customer, but when that “extra mile” includes making a “side agreement” to lend the customer money to close the deal, it’s time to...more

Massachusetts High Court Rules Real Estate Agents Not Subject to State’s Stringent Independent Contractor Law

On June 3, the Massachusetts Supreme Judicial Court held that the Commonwealth’s independent contractor law does not apply to real estate salespersons licensed under, and affiliated with and working for, a licensed brokerage...more

Massachusetts High Court Holds that Restrictive Independent Contractor Statute Does Not Apply to Real Estate Salespersons in that...

In a long-awaited decision, the Supreme Judicial Court of Massachusetts ruled yesterday that the state independent contractor (IC) law, widely regarded as the most restrictive IC law in the nation, does not apply to licensed...more

Will DOL's Overtime Rule Revisions Fix the Outside Salesperson Exemption?

The Department of Labor’s long-anticipated revisions to its Part 541 overtime exemption regulations await Office of Management and Budget review before issuance in proposed form. The new rules follow President Obama’s...more

[Webinar] Minnesota Bolsters Sales Rep Termination Act - Strategies & Guidance for Suppliers and Manufacturers, June 2, 1:00 CDT

Any supplier or manufacturer that uses sales reps in Minnesota should understand the Minnesota Termination of Sales Representatives Act (MTSRA) because it could have drastic consequences for their businesses. Contracts...more

Fifth Circuit Hands Down Mixed Ruling on Validity of Later-Added Arbitration Clause

Employers must always be careful when adding an arbitration clause to an existing employment agreement. The amendment process becomes even trickier when the employment relationship is governed by multiple documents.That was...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

Should Bergdorf’s Tell Macy’s?

In a peculiar spin on the old line “would Macy’s tell Gimbel’s,” the NLRB unanimously rejected a micro bargaining unit at retailer Bergdorf Goodman only a week after it approved a somewhat similar micro bargaining unit at...more

Recent Settlement Of FLSA Collective Action A Reminder Of The Perils Of Outside Sales Exemption

A federal district court judge recently approved the final settlement of a lawsuit between a collective class of sales representatives and their employer regarding an alleged misclassification under the outside sales...more

Are Your Sales Employees Properly Classified as Exempt?

Many employers treat their sales employees as exempt from the Fair Labor Standards Act's overtime and minimum wage requirements. Regardless of whether they pay them a salary, commissions, or some combination of both,...more

Distributor FAQ: As a distributor, can I use display booths to sell my company’s products? Is there a limit on the time I can...

As a distributor, can I use display booths to sell my company’s products? Is there a limit on the time I can spend selling at a booth? First, check the company policies, as they will be the guiding rule. Most companies...more

Distributor FAQ: In regards to event sales, such as fairs, kiosks, vending machines, etc., am I authorized to sell my company’s...

Most companies would prohibit sales in flea markets, swap meets, vending machines or garage sales. It is generally viewed that such locations dilute the value of the company’s products and opportunity. Companies typically...more

Did You Know…California Raises Minimum Wage

On September 25, 2013, Governor Brown signed AB 10 into law, raising California’s minimum wage from $8 per hour today to $10 per hour by 2016. The bill will raise the minimum wage in two separate one-dollar...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

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

Wage and Hour Laws - Are Your Employees Exempt or Non-Exempt?

Labor and employment lawyers expect the Department of Labor to increase the number of audits it conducts this year. To protect your business from lawsuits, fines and fees, you should review your exempt and non-exempt job...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

Inside Sales Exemption Poorly Understood by Many Employers

Over the past decade, employers have faced a continuing stream of claims alleging that employees have been misclassified as exempt from overtime compensation rules, as well as state laws regarding meal periods and rest...more

Healthcare Update, No. 1, February 2013: Now, Just Why Are We Firing Bob?

When dealing with the separation of an employee, there is often more than one thing the employee did that warranted termination. But when categorizing the reasons, it’s important for employers to avoid taking a...more

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