commissions – ManagEase

DOL Issues Final Rule on Changes to Overtime Exemptions

September 27, 2019/0 Comments/in HR Alerts /by ManagEase

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All Employers Subject to the FLSA

EFFECTIVE

January 1, 2020

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The U.S. Department of Labor (DOL) recently issued the final rule updating the salary requirements for overtime exempt classifications. For executive, administrative, professional, and computer professional exemptions, the salary threshold will increase from $455 to $684 per week (equivalent to $35,568 per year). Where state overtime exemptions are more strict, the federal rule will not impact those jurisdictions.

Massachusetts: Commission-Only Workers Get Overtime

June 17, 2019/0 Comments/in HR Alerts /by ManagEase

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All Employers with MA Commission-Only Employees

EFFECTIVE

May 8, 2019

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(888) 378-2456

In Sullivan v. Sleepy’s LLC, the Massachusetts Supreme Judicial Court recently stated that retail salespeople who are paid entirely in commissions or draws are entitled to separate and additional overtime or Sunday pay. There, employees who worked more than 40 hours in a week and on at least one Sunday, did not receive any additional compensation beyond their daily draw and commissions. Even though the compensation received always equaled or exceed the minimum wage and overtime and Sunday pay rates, the court stated that this was insufficient. Overtime and Sunday pay laws, as well as Department of Labor Standards’ (DLS) opinion letters, supported its interpretation.

Eleventh Circuit: Commissions Paid Only Apply to the Workweek in Which They Are Earned When Calculating Overtime Exemption Status

May 2, 2017/0 Comments/in HR Alerts /by ManagEase

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All Employers with AL, FL and GA Employees

EFFECTIVE

April 13, 2017

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(888) 378-2456

In Frexia v. Prestige Cruise Services, LLC, an employee alleged that his employer violated the FLSA because the employee’s compensation—a weekly fixed salary plus sales-based commission—fell below the overtime exemption threshold for certain weeks. The Eleventh Circuit’s review of the case confirmed that pay for work performed each workweek must be counted for that workweek, rather than counted across a span of several weeks, in order to meet the overtime exemption threshold.

California: Commissioned Employees Must be Specifically Paid for Rest Breaks

March 6, 2017/0 Comments/in HR Alerts /by ManagEase

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All Employers with CA Employees

EFFECTIVE

February 28, 2017

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(888) 378-2456

Current California wage order regulations provide non-exempt employees a minimum 10-minute rest break for every four hours worked, or major fraction thereof. These breaks must be counted as hours worked, must be paid at the employee’s hourly rate and cannot be deducted from employee wages. A

First Circuit U.S. Court of Appeals Approves Fluctuating Workweek Overtime Calculation Method Using Performance-Based Commissions

March 31, 2016/0 Comments/in HR Alerts /by ManagEase

APPLIES TO

All Employers in Maine, Massachusetts, New Hampshire, Rhode Island

EFFECTIVE

February 12, 2016

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The U.S. Court of Appeals for the First Circuit recently ruled on a Massachusetts District Court case stating that an employer’s use of the fluctuating work week (FWW) method to calculate overtime, when factoring in a performance-based pay structure, does not violate the federal Fair Labor Standards Act (FLSA) or Massachusetts Minimum Fair Wage Law.

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