OVERTIME PAY FOR SALES PEOPLE

In recent years, violations of overtime laws toward salespeople have become commonplace. Both inside and outside sales positions are frequently paid either a flat salary, or a salary plus commission without any regard for the lawfulness of denying them overtime pay for overtime hours worked. Many employers that ignore their obligation to pay overtime wages to their sales force now face lawsuits seeking substantial damages. In these cases, salespeople may recover many years of overtime pay, plus penalties against their current or former employers.

Know Your Rights. There are only two situations in which employers may deny overtime pay to Salespeople:

  • Outside salespeople who spend over half of their typical work day outside actually making sales or performing tasks “closely related” to those sales. Tasks such as delivering product and merchandising generally do not qualify as sales tasks;

  • Inside salespeople receiving more commission pay than their base salary each pay period (i.e., their commissions routinely constitute 51+% of their paycheck).
These are the only legal situations in which California salespeople may be legally denied overtime pay for hours of work beyond 8 per day or 40 per week.

The legal system is set up to “level the playing field” and give workers the power to correct workplace abuses. Scott Cole & Associates has served California’s workforce for many years as one of the state’s most respected workers’ rights law firms and has recovered massive and record-setting settlements for employees for workplace abuses.

For a confidential discussion of your rights against a former or current employer and/or to submit a claim, contact us for more information.