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Article Index » flsa and wage & hour » commissions
Report Link Dealership Update: Getting Your Pay Plans Right.
Fisher & Phillips, LLP - May 09, 2007
One of the greatest employment problems facing dealerships is properly calculating compensation for commission-based employees, and for those employees who have production-based bonuses. Pay plans are frequently challenged in court on the grounds that the terms of the plan were ambiguous or that an employee was entitled to more compensation than the dealership provided. Two recent court rulings, in California and Pennsylvania, provide clarification and valuable tools to dealerships in defending themselves against challenges to their pay plans. Sommer v. The Vanguard Group, and Koehl v. Verio.
Report Link Court Adopts Narrow Interpretation of "Commission" Under FLSA.
Ford & Harrison LLP - October 17, 2006
A federal court in Tennessee recently adopted a narrow interpretation of the term “commission” as that term is used in the Department of Labor (DOL) regulations interpreting the Fair Labor Standards Act (FLSA). See Wilks v. The Pep Boys (M.D. Tenn., Sep. 26, 2006). As a result of this interpretation, the court held that ten employees who filed a collective action against the employer for unpaid overtime compensation under the FLSA are not exempt from the FLSA’s overtime requirements under Section 7(i) of the Act. Accordingly, the employer must proceed to trial on their claims.
Report Link Commissions.
Department of Labor - (No Date)
Brief description of commissions with list of FLSA regulations covering the topic.

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