A recent case that restricts how employers pay commissioned workers could trigger more wage-and-hour class actions. Coverage of the case is discussed on Law360, Time Waner Ruling Limits Employee Compensation. The following is an excerpt and a link to the full article:
Law360, San Diego (July 14, 2014, 11:02 PM ET) — Rejecting Time Warner Cable Inc.'s defense in a proposed overtime class action, the California Supreme Court held Monday that employers can't satisfy the state's compensation requirements by carrying over commission wages from one pay period to other pay periods, a ruling that restricts how employers pay commissioned workers and could trigger more wage-and-hour class actions, lawyers say.
Time Warner argued that a former account executive's commissions, which were always paid on the final biweekly payday of each month, could be attributed to the weeks of the preceding month to meet the commissioned employee exemption's minimum wage prong, but the California Supreme Court disagreed that the employer could treat commissions in this way.
“Whether the minimum earnings prong is satisfied depends on the amount of wages actually paid in a pay period,” Justice Carol Corrigan wrote in the unanimous decision. “An employer may not attribute wages paid in one pay period to a prior pay period to cure a shortfall.” CONTINUE READING
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