Overtime Rules for Inside Salesperson Commissions
If your business sells products or services, it is likely that you have at least one inside salesperson who earns commissions on the sales that the inside salesperson makes. If this inside salesperson has the potential to earn a decent amount in commissions, your company may have classified this salesperson as an exempt commissioned employee. This means that you are not paying this person overtime pay for overtime hours worked. If this is the case, you may be incorrectly paying your inside salesperson and exposed to a potential claim for wage theft. Exempt vs Non-Exempt Classification Certain commissioned inside sales employees may be exempt from overtime pay in California if the employee earns more than one-and-a-half times the minimum wage each workweek, and more than half of the employee’s compensation represents commission earnings. (Outside salespeople do not need to meet the minimum salary requirements.) The calculation on the second prong could get complicated where the employee gets a draw on commissions. In addition to the two prongs, in order for an inside salesperson to be exempt from overtime pay, a … Continue reading
New Overtime Rules Under FLSA Approved – What You Need to Know
The Department of Labor recently approved changes to the overtime rules under the Fair Labor Standards Act (FLSA) that will have a significant impact on California employers and workers. According to the Department of Labor, the new rules will affect over 300,000 California workers who will either be entitled to overtime pay or receive raises to maintain their exempt employee status. Here are some answers to commonly asked questions about the new rules. Who is affected by the new rules? Employees who are exempt from minimum wage and overtime pay protections under the executive, administrative, and professional (EAP) exemption and the highly-compensated employee (HCE) exemption of the FLSA. (Learn about exempt vs non-exempt employees.) The FLSA covers a majority of workers. Details on who is covered by the FLSA are available from the Department of Labor. What are the changes made by the final rule? In addition to meeting the duties test, in order to meet the EAP exemption requirement, the employee must receive a salary of at least $913 per week or $47,476 annually. HCEs must receive $134,004 annually … Continue reading
Mediation – Anatomy of a Lawsuit Part VII
This series applies to California lawsuits only. For rules regarding your state’s civil litigation procedure, visit the website for your specific state’s judicial branch. This is a very broad overview. Multiple considerations must take place and detailed analysis goes into each step. To recap, we’ve discussed some considerations before filing a lawsuit such as What is the Deadline to File a Lawsuit and Where to File a Lawsuit. We’ve also discussed How to File a Lawsuit, Responding to a Lawsuit, and Discovery. Here’s a visual representation of what a lawsuit looks like. This article focuses on the phase within the blue circle. Although represented in the above flowchart as happening after the discovery phase, a case may go to mediation before a lawsuit is even filed or litigated (early or pre-litigation), at any other time, or may not go to mediation at all. It is an entirely an optional process aimed at settling the dispute before the parties spend the time and money to prepare for trial. However, if the parties are serious about settling a dispute, discovery gives each side a better sense of … Continue reading
Discovery Phase in Litigation – Anatomy of a Lawsuit Part VI
This series applies to California lawsuits only. For rules regarding your state’s civil litigation procedure, visit the website for your specific state’s judicial branch. This is a very broad overview. Multiple considerations must take place and detailed analysis goes into each step. To recap, we’ve discussed some considerations before filing a lawsuit such as What is the Deadline to File a Lawsuit and Where to File a Lawsuit. We’ve also discussed How to File a Lawsuit and Responding to a Lawsuit. Here’s a visual representation of what a lawsuit looks like. This article focuses on the phase within the blue circle. Once the initial pleadings are filed in the case and assuming that the case survives the first phase, it will move into the discovery phase. This is a big chunk of the lawsuit and one of the most expensive phases of litigation and has numerous components some of which are: Research and Strategy Litigation is a dynamic process and no two cases are exactly the same. Therefore, research and strategy is an ongoing component of any lawsuit and will take place from the case’s … Continue reading
Year-End Bonus: What You Need to Know
It’s time for reviews, year-end bonus, and raise determinations. I thought this would be the perfect time to get a better understanding of bonuses. What is a Bonus? A bonus is something “extra” that an employer provides to employees without the obligation to do so. Nevertheless, they are considered wages and are governed by state and federal wage and hour laws. Why give Bonuses? As an employer, employee bonuses are a great idea if you could afford it. Although money is not the only motivator in employee performance, it is nevertheless an effective motivator. More importantly though, a bonus demonstrates your appreciation for your employees’ hard work and performance throughout the year. Different Types of Bonuses Bonuses may either be “earned” or “discretionary.” A business may have a compensation plan that incentivizes employees with a bonus of they hit a certain yearly sales goal, work a certain number of hours in a year, or based on the company’s profits for the year. When there is a criteria that an employee has to meet, then employees earns the bonus when they … Continue reading
What You Need To Know When Hiring a Domestic Worker – AB 241
In the past couple of weeks, I’ve had many conversations with members of the “sandwich generation” and baby boomers about the challenges they face as their parents age. The heartbreak of watching parents age and lose their independence coupled with raising their own children is stressful enough. Yet, many are now finding themselves as employers for the first time (or first time in a long time) and must navigate the complicated terrain of employment regulations. If you are personally hiring your first live-in caregiver, here are a few basics you should know. You must pay at least minimum wage As of January 1, 2016, the minimum wage in California is $10.00 per hour. Caveat: San Francisco’s minimum wage is currently $12.25 per hour and goes up to $13.00 per hour in July 1, 2016. Domestic Workers Entitled to Overtime Pay AB 241, also known as the Domestic Worker Bill of Rights defines a domestic worker as any person who provides services related toe the care of people in the home, or maintain private households or their premises. Domestic workers includes nannies, … Continue reading
Hiring an Employee – “Have You Ever Been Convicted?”
I received a lot of questions from employers who have read my post on job application questions related to arrests and criminal records. The main concerns that businesses have are related to managing risks in hiring an employee and the desire to ensure that they do not engage in negligent hiring. Most wanted to know whether they could ask about criminal convictions. The answer is yes, but . . . Inquiries into criminal convictions must: Come after you’ve determined that the applicant meets the qualifications for the job; Not be related to marijuana convictions two years or older; Be accompanied by a statement that a conviction will not automatically prohibit employment (unless it is for a position that where federal or state law prohibits one with a criminal conviction from holding); Be job related and consistent with business necessity. There are 3 factors to consider when making the determination: The nature and gravity of the offense or conduct Careful consideration of the nature and gravity of the offense or conduct is the first step in determining whether a specific crime may be relevant to concerns about risks … Continue reading
Responding to a Lawsuit in California – Anatomy of a Lawsuit Part V
This series applies to California lawsuits only. For rules regarding your state’s civil litigation procedure, visit the website for your specific state’s judicial branch. This is a very broad overview. Multiple considerations must take place and detailed analysis goes into each step. You wouldn’t operate on yourself so consult with a lawyer if you have a legal dispute. To recap, we’ve discussed some considerations before filing a lawsuit such as What is the Deadline to File a Lawsuit and Where to File a Lawsuit. We’ve also discussed How to File a Lawsuit. Here’s a quick orientation on filing a lawsuit in California. This article discusses the actions within the blue circle. How to Respond to a Lawsuit? Get thee to a lawyer – as I mentioned in Part VI, lawsuits are very deadline driven and blowing the deadline to respond to a lawsuit could result in a default judgment against you, which translates to you automatically lose. What is the Deadline for Responding to a Lawsuit in California? Within 30 days after service of the complaint. The clock starts to run the day after … Continue reading
Paying Tips & Tip Pooling in California
Clients in the restaurant and food services industry often ask me about California laws on paying tips. Here are the basics on paying tips in California. General Rules on Paying Tips in California Definition of gratuity – “Gratuity” is defined by the California Labor Code as a tip, gratuity, or money that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due for services rendered or for goods, food, drink, articles sold or served to patrons. It also includes any amount paid directly by a patron to a dancer covered by IWC Wage Order 5 or 10. Rule #1 – Gratuities are the sole property of the employee or employees to whom they are given. Rule #2 – According to California Labor Code Section 351, employers may not share in or keep any portion of a tip or gratuity that a patron left for or gave to one or more employees. Rule #3 – It is illegal for employers to deduct the employee’s wages from the tips, … Continue reading
California Lawsuits – Anatomy of a Lawsuit Part III
This series applies to California lawsuits only. For rules regarding your state’s civil litigation procedure, visit the website for your state’s judicial branch. It’s been while since I wrote a post for the Anatomy of a Lawsuit series but I’m back. So far, we’ve discussed Statutes of Limitations and Where to File a Lawsuit. Today I will give you a broad overview of the trajectory a lawsuit. In the following weeks, I will discuss each part in greater detail. Filing a Lawsuit If you are considering filing a lawsuit or have been served with a summons and complaint and wondering “What to do after being served,” I would be happy to help you navigate through the complicated legal process. Feel free to contact me here to call (949) 529-0007. Next up, learn about Filing a Lawsuit in California. Sign Up for Monthly Updates For Email Newsletters you can trust. Please read our disclaimer.