Tag: commissions

bonus

Beware of Bonus Pitfalls: Overtime and Nonexempt Employees

Employers’ failure to properly factor bonus payments into overtime is probably the most common wage and hour compliance error I see, including among employers that have experienced HR personnel who are knowledgeable about the requirements of the Fair Labor Standards Act (FLSA). Failure to factor these payments into overtime is also really difficult to defend because the law on this point (unlike for some FLSA issues) is pretty clear.

commission

6th Circuit Court’s Decision Provides Guidance on Draw-on-Commission Policies

In a recent decision, the U.S. Court of Appeals for the 6th Circuit—which covers Kentucky, Michigan, Ohio, and Tennessee—held that an employer’s week-to-week, commission-only pay system was generally valid. However, it was illegal for the company’s policy to state that employees had to repay immediately upon termination draws that had been given during employment.

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 […]

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.

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 […]

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.

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 […]