News & Analysis as of

Fair Labor Standards Act (FLSA) Sales Commissions

Constangy, Brooks, Smith & Prophete, LLP

“Workin’ 9 to 5.” Is that still a thing?

If you answered no, then you’d better have the records needed to prove the number of overtime hours worked by your employees and the rates paid for them. If you don’t have the records, then borrowing a rhyme from the legal...more

Jackson Lewis P.C.

Cable Technicians Were Exempt Commissioned Employees, Fifth Circuit Concludes

Jackson Lewis P.C. on

Although the plaintiff cable technicians, who were paid by the completed job and not by the hour, were covered employees under the Fair Labor Standards Act (FLSA), they nonetheless were bona fide commissioned employees and...more

Jackson Lewis P.C.

Are Non-Emergency Transport Providers Employees or Independent Contractors? Jury Questions Exist, Eighth Circuit Holds

Jackson Lewis P.C. on

Reversing summary judgment in favor of the U.S. Department of Labor (DOL), the Eighth Circuit has held that jury questions exist as to whether the defendant employed drivers who provide non-emergency medical transport...more

Constangy, Brooks, Smith & Prophete, LLP

ABCs of Employment Law: The Fair Labor Standards Act (overtime)

Second of two on the FLSA. NOTE FROM ROBIN: In March, I began a series of very basic explanations of the federal laws that govern the workplace. The first installment covered discrimination in general, the second...more

Jackson Lewis P.C.

Auto Technicians’ Pay Structure May Have Been Convoluted, But It Was Still A Bona Fide Commission Plan, Seventh Circuit Concludes

Jackson Lewis P.C. on

Although the employer’s pay system for its auto repair technicians was complicated and at times redundant, it nevertheless constituted a bona fide commissions compensation method subject to exemption from the overtime pay...more

Jackson Lewis P.C.

Trial Court Properly Applied Rule 68 Offer Of Judgment And Reduced Attorney’s Fee Demand In FLSA Case, Eleventh Circuit Concludes

Jackson Lewis P.C. on

The plaintiff sought more than $12,000 in unpaid wages on his FLSA claims, rejected the defendant employer’s Rule 68 offer of judgment of $3,500 on those claims, and then was awarded only $97.20 plus an equal amount of...more

Constangy, Brooks, Smith & Prophete, LLP

Think Your Commission-Only Plan Is Good?

Two of the more complicated areas of California wage-and-hour law involve commission plans and overtime exemptions. Commission plans are complex animals – long gone are the days where Joey gets 5 cents for each widget he...more

Littler

New DOL Guidance Expands Eligibility for the Commissioned Employee Overtime Exemption

Littler on

Under the Fair Labor Standards Act, retail or service establishment employees can be exempt from overtime pay requirements if they are paid more than one and a half times the minimum wage and more than half of their...more

Bradley Arant Boult Cummings LLP

Window Washers and Telegraph Operators Beware: DOL Eliminates Specific Retail and Non-Retail Examples Under Overtime Exemption...

For those of you craving a non-COVID-19 issue to chew upon, the Department of Labor opened the floodgates of debate by withdrawing the partial lists of establishments that could either be “recognized as retail” or “having no...more

Kilpatrick

DOL Issues Important Overtime Update for Commission-Based Retail and Service Industry Employees

Kilpatrick on

On Monday, May 19, the Department of Labor (“DOL”) withdrew the non-exhaustive lists of establishments that were potentially eligible for or excluded from the retail or service establishment exemption to overtime under...more

Foley Hoag LLP

U.S. Department of Labor Expands Commission Sales Exemption to Federal Overtime Requirements

Foley Hoag LLP on

On May 18, 2020, the Wage and Hour Division of the U.S. Department of Labor (DOL) issued a final rule eliminating a list of businesses prohibited from taking advantage of the commission sales exemption to the overtime...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

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

ArentFox Schiff

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

ArentFox Schiff on

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

Carlton Fields

My Clients Are Canceling Contracts and Demanding Refunds, but I’ve Already Paid Commissions to My Sales Force … What Do I Do?

Carlton Fields on

Scenario: Employee is an FLSA-exempt outside sales employee and compensated 100% through sales commissions. Company has already paid Employee most of the commission due for a live trade show that has now been canceled due...more

Spilman Thomas & Battle, PLLC

DOL Adopts New Salary Threshold for White Collar Overtime Exemption

The Department of Labor (“DOL”) has revised its Overtime Rule that updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (“FLSA”) minimum...more

Hutchison PLLC

Changes to Overtime Exemptions under the Fair Labor Standards Act

Hutchison PLLC on

In 2015, the U.S. Department of Labor introduced a proposed rule which would, in part, double the salary threshold required under the Fair Labor Standards Act (“FLSA”) to maintain exempt status under the “white-collar”...more

Bricker Graydon LLP

DOL Finalizes New Overtime Rule For White-Collar Exemptions: 1.3 Million Additional Workers Will Be Eligible For Overtime Pay...

Bricker Graydon LLP on

On September 24, 2019, the United States Department of Labor (DOL) issued its final rule revising the overtime exemptions that cover employees designated as executive, administrative and professional – the so-called...more

Hogan Lovells

DOL Finalizes New Rule That Will Potentially Make Millions of Employees Eligible For Overtime Pay In January 2020

Hogan Lovells on

On September 24, 2019, the U.S. Department of Labor (DOL) announced a final rule that, effective January 1, 2020, will increase the salary threshold, by approximately 50%, that so-called “white collar” employees must be paid...more

Sheppard Mullin Richter & Hampton LLP

It’s Here: The DOL’s Final Overtime Rule has Been Released

After years of uncertainty, on September 24, 2019, the Department of Labor released a Final Rule making changes to the Fair Labor Standards Act (“FLSA”) overtime regulations. BACKGROUND - Since 2004, there had been no...more

Proskauer - Law and the Workplace

The New Federal Overtime Rule: What You Need to Know

The U.S. Department of Labor issued its final rule amending the overtime regulations today, without any significant changes from the proposed rule the agency issued in March 2019.  Here’s the bottom line....more

Proskauer - Law and the Workplace

Retail Salespeople Paid on Commission Are Entitled to Overtime and Sunday Pay, Massachusetts SJC Says

On May 8, 2019, Massachusetts’ highest court held that retail salespersons who are paid entirely on a commission or draw basis, may nevertheless be entitled to additional overtime or pay for work on Sundays. The Supreme...more

Proskauer - Law and the Workplace

Proposed Overtime Rule Published; Public Comment Period Open Until May 21

The U.S. Department of Labor’s proposed new overtime rule was published in the Federal Register on March 22nd. As described in our earlier post, the proposed new rule would...more

Jackson Walker

Proposed Update to Exempt Employee Compensation Thresholds

Jackson Walker on

The long-awaited revision to the Fair Labor Standards Act (FLSA) regulations relating to salary and compensation thresholds were announced March 7, 2019, in the Department of Labor’s Notice of Proposed Rulemaking (NPRM). The...more

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