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California Variable Rate Overtime

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  • California Variable Rate Overtime

    I work for a national company as a commision basis. I generally work more than forty hours a week. I am paid overtime referred to as variable rate overtime based on weekly sales. We are regularly required to attend meetings and training sessions after our work day. The time at the meetings are non-productive as far as sales so my rate of overtime decreases. I am wondering if there are any regulations regarding this?

  • #2
    - Do you do inside or outside sales?
    - What exactly does your company do? We do not want or need the name of the company, just more information on the nature of the business.
    - Just to be sure, are you legally an employee? Withholding on your checks, W-2 at year end?

    The short answer is almost any employer can make almost any employee work any hours the employee wants doing almost any task the employee wants. The question is what compensation is due, and more information is need to determine that.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      This is a frequent question. The answer is that the payment method is legal. Although many items that commissioned employees are required to do are non-sales related and there is no possibility that commission can be earned during that time, there is no requirement to pay the employee extra for that time provided that at least minimum wage is earned over the entire pay period.

      That is, the hours are counted as hours worked for purpose of computing overtime and your pay must total at least the minimum wage multiplied by the number of hours that were worked in the pay period. You must be paid overtime at 1.5x your regular rate, but as you point out, as you work more non-productive hours, this rate decreases.

      There is no requirement that you receive minimum wage as you work the hour. Thus, if you make no sales during an hour, are at a company meeting, etc, you are not automatically entitled to minimum wage or any other wage for that hour. There is only an issue if your total compensation for the pay period is less than minimum wage x total hours.
      Michael Tracy
      Attorney
      http://www.laborlawradio.com

      Disclaimer: The above response is a general statement of the law and should not be relied upon as legal advice. It only assumes the facts that are stated in the message. The above response does not serve to form an attorney-client relationship.

      Comment


      • #4
        California Overtime Laws

        Originally posted by bobbiking View Post
        I work for a national company as a commision basis. I generally work more than forty hours a week. I am paid overtime referred to as variable rate overtime based on weekly sales. We are regularly required to attend meetings and training sessions after our work day. The time at the meetings are non-productive as far as sales so my rate of overtime decreases. I am wondering if there are any regulations regarding this?

        Contact me to understand your question better ..this forum is fine.
        Walter L. Haines
        Attorney at Law

        "When you need an experienced Overtime Lawyer"

        Paymeovertime.com

        The material is for informational purposes only and does not constitute legal advice or establish an attorney-client relationship. DO NOT act or rely upon this information without first consulting an attorney.

        Comment


        • #5
          Just for clarification, it is perfectly okay to suggest that a poster contact you by PM if there is information they do not want to put on the board.

          However, any suggestion that an employee contact you in any format BUT this board is not permitted.

          I see your reference to contacting you via this board and that's okay. The link to your website in your signature is also okay. I just want it to be understood by all parties that direct solicitation is not allowed.
          The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

          Comment


          • #6
            California Overtime Laws

            Clearly understood. thanks.
            Walter L. Haines
            Attorney at Law

            "When you need an experienced Overtime Lawyer"

            Paymeovertime.com

            The material is for informational purposes only and does not constitute legal advice or establish an attorney-client relationship. DO NOT act or rely upon this information without first consulting an attorney.

            Comment

            The LaborLawTalk.com forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on LaborLawTalk.com are opinions and suggestions of members and is not a representation of the opinions of LaborLawTalk.com. LaborLawTalk.com does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.
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