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Common Industry Violators - Commissioned Sales People
In our experience, some businesses and industries are more prone to violate California's labor and employment laws than others. If you are, or used to be, employed in one of the following industries, please read further to see if you may have legal claims against your employer.
Commissioned Salespersons
Many businesses utilize some type of sales force to generate revenue. Oftentimes they include outside salespersons who are paid partially or totally on a commission basis. However, included within this definition are people who perform inside telephone sales, answer calls through a call center, and floor persons. Due to the perception that the employee’s compensation potential is unlimited, some employers look for ways to make salespersons work long hours without additional pay, or make them absorb costs incurred for the employer’s benefit – all at the employee’s expense.
Common violations involving salespersons who receive a commission include:
- Misclassification of employees as "exempt" from California's wage and hour laws;
- Treating employees as commissioned sales people when the employee performs other, non-exempt tasks or are not on a true "commission" arrangement;
- Misclassification of employees as independent contractors or outside business operators;
- Forcing employees to work off th eclock without proper pay;
- Not including the commission or bonus when calculating overtime or doubletime;
- Not paying for all hours worked in which commissions are not earned in violation of minimum wage, overtime and doubletime laws;
- Not providing meal or rest periods;
- Not providing drive time pay;
- Not reimbursing employees for expenses incured for the benfit of the employer, such as business use of personal vehicles, the costs of providing or maintaining office equipment, or use of private cell phones;
- Not providing detailed accurate wage statements;
- Not paying at least minimum wage during each pay period through the use of improper draws;
- Improper and unlwaful deductions from wages for returns or breakage.