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Wage and Hour › Employment Litigation › Sales Commissions

Parker Poe Adams & Bernstein LLP

Employees Not Automatically Entitled to Attorneys' Fees Under North Carolina Wage and Hour Act

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When litigating claims under the federal Fair Labor Standards Act (FLSA), litigants are aware of long-standing case law that essentially awards a prevailing plaintiff with their attorneys’ fees absent extraordinary...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

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

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

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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

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

Epstein Becker & Green

First Circuit Upholds Employer’s Discretion to Reduce Commission Payments Under the Massachusetts Wage Act

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Psychologist Abraham Maslow once observed, “If the only tool you have is a hammer, it is tempting to treat everything as if it were a nail.” That sums up the state of commission litigation under the Massachusetts Wage Act:...more

Genova Burns LLC

Appellate Division Concludes that ABC Test Does Not Apply in Determining Real Estate Agent Employment Status

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In a recent decision in Kennedy v. Weichert Co., the New Jersey Appellate Division concluded that the “ABC Test” under the Unemployment Compensation Law is inapplicable in determining a real estate salesperson status an...more

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

California Court of Appeal Analyzes ‘Salary’ Test Under Administrative Exemption

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Under California law, an employee is exempt from California’s overtime requirements and other wage and hour laws if the person is employed in an administrative capacity. To meet this exemption, California’s wage orders and...more

Foley Hoag LLP

Unpaid Future Commissions Can Be Trebled under Massachusetts Wage Act, SJC Rules

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In Massachusetts, a commission is a wage subject to the Wage Act when the amount of the commission “has been definitely determined and has become due and payable.” Accordingly, an employer’s failure to pay a commission which...more

Seyfarth Shaw LLP

The Supreme Court of Ohio Rules That Defendants Need Not Plead An Arbitration Defense To Defeat Class Certification

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Seyfarth Synopsis: Complex class actions often present a scenario in which some or most of the putative class members are subject to arbitration agreements, but the named plaintiff is not. In Gembarski v. PartsSource, Inc.,...more

Harris Beach PLLC

Massachusetts Supreme Court Rules Commission-Only Retail and Inside Salespeople are Entitled to Separate Overtime and Sunday...

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In a case of first impression, the Massachusetts Supreme Judicial Court has found that, under Massachusetts law, retail and inside sales employees, paid entirely on a commission or draw basis, are entitled to separate and...more

Akerman LLP

Vehicle Dealers Service Advisors Are Exempt From Overtime

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Vehicle dealerships may have a bit more flexibility in determining which employees are exempt from overtime following a U.S. Supreme Court ruling issued this week that specifically rejected the decades-old principle that...more

Holland & Knight LLP

Supreme Court Rejects Narrow Interpretation of FLSA Statutory Exemptions

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• In Encino Motorcars, LLC v. Hector Navarro, et al., the U.S. Supreme Court decided 5-4 that service advisors at car dealerships are exempt from overtime pay under the Fair Labor Standards Act (FLSA). • The Court held...more

Bennett Jones LLP

Courts Will Not Sever Defective Termination Provisions

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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

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