News & Analysis as of

Sales Commissions

Case Interpreting FLSA Highly Compensated Exemption Takes Interesting Slant

by Fox Rothschild LLP on

There has not been much litigation over the HCE, the so-called Highly Compensated Employee exemption under the FLSA. Recently, an interesting case explored the issue of whether commission payments can form the entirety of the...more

Court Affirms Dismissal Of Claim For Commissions For Placement Of Puerto Rican Public Liability Insurance

by Carlton Fields on

Plaintiffs Berkley Risk Solutions LLC, an insurance and reinsurance management services provider, and Admiral Insurance Co., an excess and surplus lines insurer, sued Industrial Re-International Inc., a New York reinsurance...more

Sixth Circuit Provides Clarification On Legality Of Draw-On-Commission Policy

Last month, the Sixth Circuit revived a lawsuit brought under the Fair Labor Standards Act (“FLSA”) alleging that a retailer’s commission policy was unlawful in Stein v. hhgregg, Inc., 2017 U.S. App. LEXIS 19908 (6th Cir....more

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

Sales Commission Agreements Can Limit Potential Liability

by Foley & Lardner LLP on

A manufacturing company’s sales employee successfully convinces a new customer to purchase a commercial cooler. Under the employee’s sales commission plan, she receives a commission of 2% of the price of the cooler and any...more

Sixth Circuit Draws the Line: Draws on Future Commissions and Post-Termination Payback Policies

Employers beware. A recent case serves as a reminder as we wind down the calendar year that employers should closely review their policies and procedures applying to employees paid on a 100% commission or draw basis. In Stein...more

A “New Look” for Salon Employee Commission Arrangements in California

A new addition to California law changes the definition of commission pay for licensed employees of beauty salons and barber shops. Under the new law, certain common arrangements, such as agreements to pay stylists on a...more

ComMISSION Impossible: The Pitfalls of California Commission Agreements

by Seyfarth Shaw LLP on

Seyfarth Synopsis: There are many different ways to pay employees in California. What is the scoop behind paying commissions? What are commission agreements and how have courts deciphered their coded mysteries?...more

Are "Draws" Against Commissions Unlawful "Kick-Backs"?

by Fisher Phillips on

Media reports have mistakenly suggested that a recent decision by the Sixth Circuit U.S. Court of Appeals (Kentucky, Michigan, Ohio, and Tennessee) found the federal Fair Labor Standards Act to prohibit recouping a draw or...more

National Appliance And Electronics Retailer’s Sales Commission Policy Was Lawful – For The Most Part, Sixth Circuit Rules

by Jackson Lewis P.C. on

In what may be viewed as a pyrrhic victory, now-defunct[1] “big box” electronics, appliance and furniture retailer hhgregg’s commission-with-draws compensation program generally was lawful under the FLSA, the Sixth Circuit...more

Big Commissions & FLSA Omissions: How Employers Could Be Required to Pay Six-Figure Earners Overtime Wages

by Seyfarth Shaw LLP on

Seyfarth Synopsis: A recent decision highlights why the FLSA is not always the remedial statute created to protect low-income workers by holding that four commission-based sales representatives, each earning six figures, were...more

Employer Can Use Draw-On-Commissions but Cannot Require Repayment Upon Termination

On October 12, the Sixth Circuit Court of Appeals partially approved and partially rejected an unusual pay plan designed to satisfy federal minimum wage requirements. In Stein v. HHGregg, Inc., the employer placed retail...more

Courts Will Not Sever Defective Termination Provisions

by Bennett Jones LLP on

North v Metaswitch Networks Corporation, 2017 ONCA 790 [Metaswitch] is the latest in a series of employee-friendly appellate level decisions where a contractual termination provision is not enforced. The Ontario Court of...more

Sixth Circuit Cries Foul on Post-Termination Repayment of Recoverable Draw

by Seyfarth Shaw LLP on

Seyfarth Synopsis: A common feature of many a commission plan is the recoverable draw that is offset against future commissions. The DOL has long held this is a permissible way to satisfy the minimum wage requirement. In a...more

Service Advisors at Auto Dealerships: An FLSA Exemption Case Makes its Way Back to the Supreme Court

by McNees Wallace & Nurick LLC on

The United States Supreme Court will address again whether service advisors are exempt from overtime compensation requirements of the Fair Labor Standards Act (“FLSA”)....more

Sales Representative Who Was Paid $900,000 Can Still Claim Violation of Overtime Law, Says Federal Court

by Zuckerman Spaeder LLP on

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

Flex commission prohibition

by Dentons on

A new law commencing on 1 November 2018 prohibits arrangements where introducers are provided with a delivery rate to which introducers can add a margin to determine the borrower rate – subject to some exceptions. Lenders,...more

Legal and Financial Risk - July 2017

by Hogan Lovells on

Secured creditors are not left out in the cold - In the recent case of Kevin Taylor v Van Dutch Marine Holding Ltd and others, the High Court decided that the exercise of existing rights by a secured creditor should not be...more

Class Action Suits Against Massachusetts Car Dealers on the Rise

by Mintz Levin on

Spurred by a recent change in a Massachusetts wage and hour regulation, plaintiffs’ attorneys are aggressively pursuing class action lawsuits seeking unpaid overtime premium pay on behalf of car salespeople across the...more

Appellate Court Notes

by Pullman & Comley, LLC on

Supreme Court Advance Release Opinions: - SC19799 - Middlebury v. Connecticut Siting Council Neighbors unsuccessfully challenged the modification of an approval for a new power plant before the Siting Council claiming...more

Eighth Circuit Finds Notice Within Policy Period Still Violated Claims Made Policy’s Notice Provision

by Cozen O'Connor on

On May 25, 2017, the Eighth Circuit Court of Appeals handed down its decision in Food Market Merchandising Inc. v. Scottsdale Indemnity Co. The decision is noteworthy because the court joined a limited number of other courts...more

Picking a Fight: How California Makes Employment Law Peculiar

by Seyfarth Shaw LLP on

Seyfarth Synopsis: Our mission here at Cal-Pecs is to illuminate how California employment law differs from the law that employers generally experience throughout America. In this back-to-basics piece, we provide some...more

The Ugly Side Of Salon & Spa Compensation

by Fox Rothschild LLP on

Earlier this week, I was advising a client on the termination of one of their spa employees. During the course of the conversation about his poor performance, the issue of his compensation came up. Turns out, while the...more

Where’s The Rest Of My Pay?

In Vaquero v. Stoneledge Furniture LLC, a California Court of Appeal recently held that inside sales employees who are paid on a 100% commission basis must be separately compensated for their rest periods. Though inside...more

Expect Focus - Life Insurance: Risky Business, Volume I, March 2017

by Carlton Fields on

Regulators Demand Third-Party Risk Management - While third-party risk management has been a required component of an effective enterprise risk management program for many years, the topic is receiving elevated...more

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