Total Articles: 7
Jackson Lewis P.C. • November 15, 2017
In what may be viewed as a pyrrhic victory, now-defunct “big box” electronics, appliance and furniture retailer hhgregg’s commission-with-draws compensation program generally was lawful under the FLSA, the Sixth Circuit Court of Appeals has held. However, its policy holding employees liable for any unearned draw payments upon termination of employment would violate the Act. Stein v. hhgregg, Inc., 2017 U.S. App. LEXIS 19908 (3rd Cir. Oct. 12, 2017). The Sixth Circuit has jurisdiction over Kentucky, Michigan, Ohio and Tennessee.
Fisher Phillips • November 14, 2017
Media reports have mistakenly suggested that a recent decision by the Sixth Circuit U.S. Court of Appeals (Kentucky, Michigan, Ohio, and Tennessee) found the federal Fair Labor Standards Act to prohibit recouping a draw or advance from future earnings. However, a closer reading of the opinion proves that you can't judge a ruling by its headings.
Jackson Lewis P.C. • July 15, 2015
This blog has stressed (most recently here and here) the importance of carefully drafting incentive compensations plans to avoid unintentionally converting incentive compensation into earned “wages” protected under state law. Another recent decision, this one from the Court of Appeals for the Seventh Circuit reinforces the employer benefits of careful drafting. Lawson v. Sun Microsystems, Inc., 2015 U.S. App. LEXIS 11201 (7th Cir. June 30, 2015).
Franczek Radelet P.C • September 16, 2011
Reading about a recent lawsuit filed against Groupon, I was reminded that even the most cutting edge businesses may not understand the nuances associated with calculating overtime and find themselves a target for running afoul of wage and hour laws. My colleague and fellow blogger, Bill Pokorny, wrote a helpful blog entry last week on calculating overtime for salaried employees. I thought it might be useful for our readers if a follow-up entry was posted discussing how to calculate overtime for salaried, non-exempt employees who also receive commissions.
Fisher Phillips • October 15, 2010
More than ever, retailers are being squeezed between rising costs (including labor expense) and sagging revenue. What if there was a lawful way to compensate retail employees that gives them a stake in working to increase sales while at the same time eliminating the need to pay overtime? There is such an alternative, but many employers are overlooking it.
Fisher Phillips • June 17, 2010
The federal Fair Labor Standards Act does not require overtime to be calculated in the way shown in our June 11 post. The overtime amount the FLSA actually calls for is about 30% of the figure shown there.
Fisher Phillips • 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.