Overtime Pay Complaints

If you were employed as a commissioned sales employee (i.e., a stockbroker, mortgage broker, pharmaceutical or drug rep, commercial equipment salesperson, or other salesperson paid on a commission basis on sales) and you believe that you have not been paid you all of the overtime pay, hourly wages, salary and other benefits that you believe you are owed, tell us your story!

–Report Unpaid Commissioned Sales Overtime–

Commissioned Sales Employees — You Have Legal Rights!

Federal labor law generally requires employees to be paid overtime pay at a rate of not less than one and one-half times an employee’s regular rate of pay after 40 hours of work in a workweek. Employees in the sales industry are no different and are typically entitled to overtime pay, unless they are exempt. Unfortunately, commissioned sales employees are often misclassifed by their employers as exempt from overtime.

Workers in the sales industry are sometimes incorrectly treated as executives, administrators, professionals, outside sale persons, commissioned retail and service sales employees, independent contractors or other exempt employees when they should not be. These terms are defined by the Fair Labor Standards Act (FLSA) and require that very specific legal requirements be met before they can apply to prevent you from receiving overtime pay.

For example, in order for commissioned sales employees to be exempt under the retail or service commissioned sales exemption of Section 7(i) of the Fair Labor Standards Act, three conditions must be met:

1. the employee must be employed by a retail or service establishment, and
2. the employee’s regular rate of pay must exceed one and one-half times the applicable minimum wage for every hour worked in a workweek in which overtime hours are worked, and
3. more than half the employee’s total earnings in a representative period must consist of commissions (the representative period for determining if enough commissions have been paid may be as short as one month, but must not be greater than one year).

If all requirement are not met, overtime premium pay must be paid for all hours worked over 40 in a workweek at time and one-half the regular rate of pay. Failure to do this is a common FLSA overtime labor law violation.

Retail and service establishments are defined as establishments 75% of whose annual dollar volume of sales of goods or services (or of both) is not for resale and is recognized as retail sales or services in the particular industry. If the employee is paid entirely by commissions, or draws and commissions, or if commissions are always greater than salary or hourly amounts paid, the-greater-than-50%-commissions condition will have been met.

If you were employed as a commissioned sales employee selling non-retail products or services or other items sold for resale (i.e., wholesale sales rep, B2B sales, commercial sales) or less than half  (50%) of your total earnings came from commissions regardless of the products you sold, you may be owed overtime pay.

-Report Unpaid Overtime & Wages-

Commissioned sales employees are sometimes denied overtime pay for other reasons which can be improper. Common industrywide examples include:

• requiring employees to work off the clock (not recording time actually worked by the employee on the job, not paying for meal periods and rest breaks, failing to pay overtime for travel time from the office to a work-site and back, not paying overtime for time spent working while traveling, refusing to pay overtime for attendance at training, meetings and lectures, not paying for time spent doing necessary preparations for work such as suiting up or putting on protective gear on, on-call time, or time in security lines, forcing employees to work without clocking in, or by telling employees to report fewer hours than actually worked);
• telling employees that they did not get permission or approval in advance for the overtime or that they are paid a salary and salaried workers are not entitled to overtime (just because you are paid a salary does not necessarily mean that you are not entitled to overtime);
• miscalculating the amount of overtime pay due (employers often improperly calculate overtime by carrying over one week’s earned overtime hours into another week, paying employees their regular rate for overtime work instead of time and a half; altering employees’ time sheets and records, etc.).

–Contact An Overtime Pay Class Action Attorney–

If you were employed as a commissioned sales employee and believe you have not been paid all of the overtime pay, hourly wages, salary and other benefits you believe you are due (or if you are just not sure and want to find out), the Overtime Pay Class Action Attorneys at ClassActionConnect.com may be able to help you.

-Report Unpaid Overtime & Wages-

You can also share your overtime pay and wage complaints, if any, with other commissioned sales employees by leaving a comment below.

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-Report Unpaid Overtime & Wages-