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The Fair Labor Standards Act (FLSA) is a federal law governing the national minimum wage, overtime pay, youth employment and other labor issues. While the FLSA has been altered by various amendments since its 1938 enactment, the primary function of this law is to protect workers and ensure that they are adequately paid for the work they perform.
In addition to dictating regulations for overtime and tip provisions, the Fair Labor Standards Act also outlines particular rules and requirements for commissions employs may earn. To ensure compliance and avoid being victimized, both employers and employees should take time to review and learn the FLSA's commission provisions.
If employees suspect their employer is violating these commission regulations, they should talk to an experienced labor lawyer to determine if they have a case.
Commissioned employees covered by the FLSA are legally entitled to be paid minimum wage, which will increase from $6.55 per hour to $7.25 per hour on July 24, 2009.
Similarly, these employees are also fully entitled to overtime pay for any hours over the required 40 that they work in the same week. Just as with non-commissioned employees, those who earn commission should legally be paid at least 1.5 times their standard pay rate. However, unlike non-commissioned employees, the standard pay rate will include the earned commissions, a fact that typically makes overtime pay for commissioned employees significantly more than it is for others.
Keep in mind that the Fair Labor Standards Act includes certain exemptions to overtime pay for commissioned workers. In fact, employees who work for commission in retail or service capacities aren't entitled to overtime pay rates (Section 7(i)) if:
If both of the above stipulations are met, then employers can only invoke overtime exemptions as long as:
All three of the above standards must be met for overtime exemptions to legally apply. If any of these stipulations isn't fulfilled, then employers will still be required to pay their commissioned employees overtime rates for any time they work over 40 hours in a given week.
While commissioned employees can be victimized by minimum wage and/or overtime violations, they may also be negatively affected if their employers flat out fail to pay their earned commissions in defiance of the Fair Labor Standards Act.
Because the FLSA is a complex, multifaceted law, any commission earner who suspects that his or her employer has unjustly withheld commission or otherwise violated the FLSA should talk to a seasoned employment lawyer. Labor lawyers can explain the law and help you evaluate your case.
Find out if you have a case by setting up a consultation with an experienced FLSA lawyer today.
California Labor Commissioner, Angela Bradstreet filed a lawsuit with the Superior Court of California, County of San Diego, Dec. 23, against Einstein Industries Inc. According to the lawsuit, the San Diego-based online healthcare and ...
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