Commissioned retail or service sales exemption to overtime payment
posted by Neil Klingshirn | Jul 11, 2009 4:20 PM [EST] in Overtime | applies to All States
Employment by a retail or service establishment
Employees of a retail or service establishment are exempt from overtime if:
- their regular rate of pay is at least one and one-half times the federal minimum wage ($7.25 after July 24, 2009), or $10.86 an hour; and
- more than half of their compensation is from commissions on goods or services.
The retail or service establishment commission exemption does not apply to employees of financial firms paid by commission, such as loan officers.
In 1959 the United States Supreme Court expressly held that enterprises in the financial field, such as banks, credit companies and personal loan companies, do not qualify as a “retail or service establishment” within the meaning of this exemption. Although Congress amended this exemption since then, it made clear that it did not intend the exemption to apply to financial service companies. Likewise, the DOL has long interpreted this exemption as not covering financial service firms.
posted by Neil Klingshirn | Jul 11, 2009 4:20 PM [EST] in Overtime | applies to All States
Related MEL Links
Articles more »
- Overtime Wages When Carrying and Using a Pager or Cell Phone After-hours for Your Employer
- Overtime pay for On Call Time
- Illinois State Overtime Law
- Movie Theaters are exempt from federal overtime laws
- Ohio Minimum Wage with Treble Damages and Attorneys Fees
Questions & Answers more »
- Can an LPN be forced into an exempt status?
- Can I work 7-10 days straight without overtime?
- Are commercial drivers exempt from overtime laws and where is the reference, if so?
- Can my employer force me to take flex time in lieu of overtime by readjusting a set work week?
- Can you be denied overtime working for two related companies.
Blog Articles more »