News & Analysis as of

Wage and Hour Sales Commissions State Labor Laws

Fox Rothschild LLP

New Jersey Supreme Court to Hear Important Wage Case

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In June 2024 I wrote this article discussing in-depth the case of Musker v. Succhi, et al., and the implications the Appellate Division’s ruling had for wage disputes regarding sales commissions. As a reminder, the plaintiff...more

Parker Poe Adams & Bernstein LLP

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

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

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

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

Epstein Becker & Green on

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

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

Colorado Department of Labor and Employment Releases a Slew of New Guidance

​​​​​​​The Colorado Department of Labor and Employment (CDLE) has been busy this summer with the release of several Interpretive Notice & Formal Opinions (INFOs), providing guidance on the evolving landscape of Colorado...more

Butler Snow LLP

Texas Supreme Court to Texas Employers: Employee Sales Commission Agreement Terms Better be Clear or Commissions Could be Owed...

Butler Snow LLP on

The Texas Supreme Court recently established a “default rule” which, as the dissent puts it, may “threaten the expectations of Texas at-will employers and employees who have agreed to a commission structure but, for whatever...more

McAfee & Taft

'I got fired …. but I still want my commissions'

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Although it involves Texas law, a recent case illustrates the pitfalls that an employer can face when a former employee makes a claim for commissions or compensation after their employment has ended. It also offers...more

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

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

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

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

Jaburg Wilk

What Happens if Bonuses or Commissions are Not Paid in Arizona?

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Arizona law with respect to payment of bonuses and/or commissions is not always clear. There are many issues for both the employer and employee to consider. Below is a summary of some of things both parties should consider in...more

Sheppard Mullin Richter & Hampton LLP

Peace for Piece-Rate Employers in Washington

On September 5, 2019, the Washington Supreme Court issued a huge win for all non-agricultural employers who pay commission or piece-rate pay to their employees in Washington state. In a 6-3 decision, the Washington Supreme...more

Cozen O'Connor

What Does Your Minnesota Business Need to do to Comply with Minnesota’s new Wage Theft Law?

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Starting today, Minnesota has one of the toughest wage theft laws in the country. The civil portions of Minnesota’s new Wage Theft Law, effective July 1, 2019, require employees to take the following additional actions...more

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

Massachusetts Supreme Judicial Court Finds That Commissioned Salespeople Must Be Paid Overtime

On May 8, 2019, the Massachusetts Supreme Judicial Court (SJC) issued a unanimous opinion holding that salespeople who are paid solely on draws and commissions are entitled to separate and additional overtime and Sunday pay...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

Jackson Lewis P.C.

Commission-Only Inside Salespersons Are Entitled To Overtime And Sunday Pay Under Massachusetts Law

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Adhering to the “plain and ordinary” language of the state’s overtime statute and related regulations, the Massachusetts Supreme Judicial Court has held that inside sales employees paid on a 100% commission basis are...more

Nutter McClennen & Fish LLP

Commissions Contingent on Customer Payments Are Permissible Under the Massachusetts Wage Act  

In Lukas v. Unidine Corp., et al., Judge Davis held that, under the Massachusetts Wage Act, GL c. 149, § 148, employee commissions can be conditioned on receipt of customer payments on which the commissions are based. Judge...more

Fisher Phillips

Appeasing The 3-Headed Monster For Incentive-Paid Employees

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Many California employers are familiar with the three-headed monster of medical leave questions: family medical leave (state and federal), disability leave and accommodation, and workers’ compensation leave. The wage and hour...more

Littler

California’s Newest Laws: It’s Shocktober for Employers!

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The September 30, 2018 deadline has come and gone for Governor Jerry Brown to evaluate the bills passed by the California legislature this year. In his last hurrah, Governor Brown has signed into law a jaw-dropping number of...more

Foley & Lardner LLP

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

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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

Foley & Lardner LLP

Sales Commission Agreements Can Limit Potential Liability

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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

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

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

Seyfarth Shaw LLP

ComMISSION Impossible: The Pitfalls of California Commission Agreements

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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

Payne & Fears

Key California Employment Law Cases: February 2017

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The key California employment law cases from February 2017 involve collective bargaining/union and wage and hour issues. - Collective Bargaining/Union Issues - Vasserman v. Henry Mayo Newhall Memorial Hospital, 8 Cal....more

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