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Compensation & Benefits › Sales Commissions

Seyfarth Shaw LLP

New Jersey Supreme Court Finds Commissions Are Considered “Wages” Under State Law

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On March 17, 2025, the New Jersey Supreme Court ruled that commissions are considered “wages” under the New Jersey Wage Payment Law (“NJWPL”). This critical decision clarifies that commissions are direct monetary compensation...more

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

Seyfarth Shaw LLP

First Circuit Finds Commission Plan’s Windfall Provision Permissible Under Massachusetts Wage Act

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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

Butler Snow LLP

Texas Supreme Court to Texas Employers: Employee Sales Commission Agreement Terms Better be Clear or Commissions Could be Owed...

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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

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

High Court of Denmark Rules on Compensation for Loss of Commission During Holidays

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The Maritime and Commercial High Court in Denmark ruled on the approach that employers can take when calculating compensation for loss of commission during holiday....more

ArentFox Schiff

As Employers Begin to Reopen, DOL Issues Final Rule Clarifying Fluctuating Workweek Overtime Compensation Method

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On May 20, 2020, the US Department of Labor (DOL) announced a final rule that clarifies that payments in addition to the fixed salary are compatible with the use of the fluctuating workweek method under the Fair Labor...more

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