News & Analysis as of

Sales Commissions Retailers

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

Massachusetts Supreme Judicial Court Rejects Compensation Plan Allocating Commissions to Overtime and Premium Pay

On March 28, 2024, in Sutton v. Jordan’s Furniture, Inc., the Massachusetts Supreme Judicial Court (SJC) upheld a Massachusetts Superior Court decision finding the furniture retailer’s commission-based compensation scheme...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

Fox Rothschild LLP

In Major Move, USDOL Makes It Easier For Employers To Claim The Commission Exemption Of 29 USC 207(i)—Outstanding!

Fox Rothschild LLP on

I have handled many cases involving the so-called commission exemption under the Fair Labor Standards Act, Section 207(i), and I can safely say that often a big stumbling block for the defendant (i.e. employer) is to show...more

Robins Kaplan LLP

Apple Inc. v. Pepper: A Case to Watch for Commissions-Based Retailers Selling Directly to Consumers

Robins Kaplan LLP on

In May, the U.S. Supreme Court issued a decision in Apple Inc. v. Pepper, 139 S. Ct. 1514 (2019), holding that consumers of Apple’s App Store could bring suit against the tech giant for antitrust claims. ...more

Foley & Lardner LLP

When is a “Bonus” Really a “Commission”? A Helpful Reminder to Ensure Your Pay Plans Comply with State Laws

Foley & Lardner LLP on

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

Sheppard Mullin Richter & Hampton LLP

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

Jackson Lewis P.C.

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

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

Parker Poe Adams & Bernstein LLP

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

Seyfarth Shaw LLP

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

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

Manatt, Phelps & Phillips, LLP

Retail and Consumer Products Law Roundup - January 2017

False Ad Suit Survives When Consumers "Swept Into" Purchase - Why It Matters - A California Court of Appeal found that plaintiff consumers had raised triable issues of fact on whether they suffered damages in...more

Foley & Lardner LLP

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

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

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