Tag: commissions

commission

Are Contingencies in Commission Agreements Worth the Paper They’re Written On?

Late last year, the Massachusetts Appeals Court ruled that commissions are “due and payable” under the Massachusetts Wage Act at the time an employee resigns or is terminated, even if the employee might not be eligible to receive the payments under the terms of the company’s commission agreement or plan. (See, Commission Structure Doesn’t Justify […]

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How Minimum Wage Requirements Impact Commissions-Based Pay, Payroll Deductions

In this article series, we provide a refresher on the basics of the Fair Labor Standard Act’s (FLSA’s) requirements.  In our previous article, we discussed the FLSA’s minimum wage requirements applied to tipped employees and piece-rate workers.  Here we discuss how they impact employees paid on a commission basis and payroll deductions.

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5 common myths about the FLSA

by Tareen Zafrullah The Fair Labor Standards Act (FLSA) is a federal law that imposes minimum wage, overtime, record-keeping, and child labor requirements. Although the U.S. Department of Labor (DOL) enforces the FLSA, employees may file their own lawsuits under the Act. A lawsuit may be an individual action or a collective action, which is […]

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Ask the Expert: Can We Forfeit Commission Payout If Employee Doesn’t Meet Criteria?

Question: If there is an agreement in place that an employee must meet certain criteria before receiving their commission payout, and they don’t meet the criteria by the deadline, can you forfeit paying the commission? For example, the invoice/job order the employee submits has to be turned in by X amount of days otherwise the […]

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sales

Ask the Expert: Sunday/Holiday Rate Calculation for Commissioned Employees

Question: We have some employees that are exempt and are on salary being paid a commission. If these employees work on a Sunday that is a holiday how should they be paid for that time? Are we in compliance if we calculate a flat amount based on the salary they are being paid in the […]

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Massachusetts

Commission Structure Doesn’t Justify Failure to Pay Wages Due at Termination

Commission payments often make up a significant portion of the compensation paid to employees who work in sales. The structure of commission payments varies from industry to industry and from region to region, but commissions serve the same basic purpose: financially motivating employees to increase their sales with the promise of receiving higher income.

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DOL Fiduciary Rule 101

Did you know that under existing laws, the person or organization who manages your company’s 401(k) is not legally obligated to provide advice that is in the best interest of the investor? If that seems crazy to you, then it perhaps will come as no surprise that this is about to be changed with the […]

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New California laws affecting employers take effect January 1

by Jim Brown California employers will have several new laws to deal with as of January 1, 2013. Of particular interest are measures affecting social media passwords, religious dress and grooming standards, and commission agreements. Social media passwords Assembly Bill 1844 prohibits employers from requiring employees or applicants to disclose usernames or passwords for the […]

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Termination Pay Considerations for Commissioned Employees in Canada

by Katie Clayton and Jennifer Shepherd Figuring out an employee’s entitlements upon termination can be tricky in Canada. It can be an even trickier exercise for commissioned employees. For example, are employers required to pay employees commissions for deals that close after they are terminated? Unless the employment contract explicitly states otherwise, the answer is […]

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