News & Analysis as of

Sales Commissions Fair Labor Standards Act

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

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

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

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

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

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

California Employment Law Notes - March 2017

Victoria Zetwick, a county correctional officer, alleged that the county sheriff created a sexually hostile environment in violation of Title VII and the California Fair Employment and Housing Act by, among other things,...more

What Is The Section 7(i) Exemption And Does It Apply To Auto Dealer Service Advisers?

by Franczek Radelet P.C. on

Over the summer, the U.S. Supreme Court punted on the question of whether “Service Advisers” or “Service Writers” at auto dealerships fall within the Fair Labor Standards Act’s exemption for “any salesman, partsman, or...more

100 Days Until the New Overtime Rule Takes Effect: Is Your Company Ready?

On December 1, 2016, the annual cost of classifying most executive, administrative, or professional employees as “exempt” from the overtime rules more than doubles ($23,660 to $47,476). Is your company ready for this change?...more

Supreme Court Passes Automobile Dealership Service Advisor Exemption Issue Back to Lower Court

On June 20, 2016, the U.S. Supreme Court declined to provide a definitive opinion on a pay issue that has concerned automobile dealerships for years. The question involves whether dealership service advisors fall under the...more

What Bonuses and Incentive Payments Count As "Discretionary" Under The New Exemption Rules?

by Franczek Radelet P.C. on

One of the more surprising changes in the new FLSA overtime exemption rules is a provision allowing  certain bonuses, commissions, and incentive pay to count for up to 10% of the new increased minimum salary level. However,...more

First Circuit Approves Use of FWW Method for Pay That Varies Due to Performance-Based Commissions

The First Circuit Court of Appeals recently affirmed a lower court’s decision that an employer may use the fluctuating workweek method to calculate overtime pay rates even when an employee’s weekly pay varies because of...more

Affirming Common Sense: Appeals Court Rejects Plaintiff’s “Two Rights Make A Wrong” Theory Involving Fluctuating Workweek Method

by Seyfarth Shaw LLP on

The U.S. Court of Appeals for the First Circuit recently sided with an ever-increasing line of cases clarifying the type of payments that may be added to a fixed salary without violating the fluctuating workweek method...more

Financial Services Industry: Be Aware of Proposed White Collar Overtime Regulations

by Baker Donelson on

The financial services area received a defeat earlier this year when the United States Supreme Court in March upheld the Department of Labor's (DOL) Administrative Interpretation concluding that mortgage loan officers do not...more

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

by Foley & Lardner LLP on

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

General Release May Not Preclude FLSA Claims Says Fifth Circuit

by Seyfarth Shaw LLP on

If I settle my employment lawsuit and release “all claims,” does that include wage-hour claims if the subject never came up? Last week, in Bodle, et al. v. TXL Mortgage Corporation, the Fifth Circuit said no....more

Determining When a Commission is "Earned" When Calculating the Regular Rate

by Franczek Radelet P.C. on

In our last post, we discussed the calculation of the “regular rate” and some of the complexities of determining what constitutes “remuneration” under the Fair Labor Standards Act (FLSA). Commission is one of the additional...more

Hot Topics in Wage and Hour Compliance

by Morgan Lewis on

Employers should consider these recommendations for handling uniform purchase and maintenance costs, unpaid interns, and minimum wage requirements. UNIFORM PURCHASE AND MAINTENANCE COSTS Problem/Issue Employees...more

FLSA Collective Action Waivers In Separation Agreements May Not Be Valid In 6th Circuit

by Miller Canfield on

Employees discharged as part of a company restructuring can participate in a collective action lawsuit for unpaid overtime wages under the Fair Labor Standards Act (FLSA) despite waiving their collective action rights in...more

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