Posts Tagged ‘Commissions’
Under the Fair Labor Standards Act, you are entitled to be paid time and a half for each hour worked over 40 in a given week. When computing these hours, the employer should normally include off the clock training.
Following an investigation by the U.S. Department of Labor’s Wage and Hour Division, Tulsa-based United States Beef Corp., doing business as Arby’s, has agreed to pay $56,838 in back wages to 759 current and former hourly paid managers in Arkansas, Illinois, Kansas, Missouri and Oklahoma.
Investigators found that at 255 Arby’s locations in the five states, bonuses paid to managers were not included in regular rates of pay when overtime was computed. The Fair Labor Standards Act requires that covered employees be paid time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week.
Additionally, managers in training at an Arby’s in Wichita, Kan., were required to review training material outside of their work hours and not properly compensated for this time. Under the FLSA, employees must receive at least the federal minimum wage of $7.25 for all hours worked.
“We are pleased that this company has agreed to change its practices to comply with the Fair Labor Standards Act,” said Cynthia Watson, regional administrator for the department’s Wage and Hour Division in the Southwest. “The Wage and Hour Division actively pursues systemic violations by multi-state employers wherever employees are affected by bad practices.”
If you believe you have not been paid properly by your employer speak to the U.S. Department of Labor or an attorney that specializes in wage and hour law. Feel free to call Scott Behren and the Behren Law Firm for a free consultation.
Under Florida law, the general rule is that an employee who quits their job is not entitled to receive unemployment benefits. However, there is an exception to this general rule where the employee left with good cause attributable to the employer.
Dennis Martinez was a full time car salesman for Ford Midway Mall. Martinez was originally hired on a commission basis, but some time into his employment, his position was changed to where he received a draw against his commissions. When business declined and he was earning no commissions, based upon the employer draw, he would owe the employer money each week. As of the date of his resignation, Martinez owed over $2,000 to his employer due to these draws. Martinez expressed his dissatisfaction with this arrangement to his employer and resigned.
The unemployment referee determined that Martinez voluntarily quit without good cause of the employer. He further decided that because Martinez agreed originally to this draw policy, that he could not contest it a year later.
The Third District Court of Appeal reversed the determination of unemployment. The Court held that the unemployment laws “provides that an individual is not disqualified for unemployment benefits where the individual has “voluntarily left work with good cause attributable” to the employer. § 443.101(1)(a), Fla. Stat. (2009). “Good cause” includes cause attributable to the employer, which “as contemplated by the unemployment compensation law, describes that which would drive an average, able-bodied worker to quit his or her job.”
The Court held that the auto dealer was in violation of the Fair Labor Standards Act (“FLSA”) and the Florida Minimum Wage Act because Martinez was not getting paid the minimum hourly wage for the hours he was working for his employer. The Court held that the draw agreement used by the employer was in violation of the FLSA and Florida Minimum Wage Act. Moreover, the Court held that merely allowing them to pay under the draw policy, for a period of time did not result in a waiver of his legal rights under the FLSA.
The Court held that due to the employer’s violations of the FLSA and Florida Minimum Wage Act, Martinez had left his employment due to good cause attributable to the employer. The Court reversed the decision of unemployment and awarded Martinez his benefits.
The Opinion of the Third District Court of Appeal is here.
If you have lost your job one of the very typical questions that I will get is whether after being terminated you still get your vacation or sick pay that you earned. Generally, the first place you should look to determine this is what the employment handbook of your employer has to say on the issue. A good employment manual from an employer should spell out what happens with your vacation or sick pay after you leave employment. If the employment manual does not address it, and if the vacation or sick pay is earned, then my advice normally is that you are entitled to be paid that vacation pay after termination or leaving your employment. Of course, this issue may be affected by laws in your state, so make sure to consult with an employment law attorney in your state before proceeding with any action.
Another issue that frequently comes up is whether you are entitled to receive commissions you earned during your employment that have not yet been paid to you. In most instances you are entitled to be paid these commissions with one general exception. In some cases, if receiving your commission was based upon providing service to the customer after the sale, the employer may have a basis to not pay you your commissions. In addition, most good employment manuals will address in detail what happens to your commissions when your leave the employment of your employer.