Developments in Wage and Hour

« Multiemployer Plans | Main | Discrimination and Retaliation Cases »

Sep 6

Developments in Wage and Hour

Linda Chan

September 6, 2006

Know More: Employment law 2.0, Employment law

In Smith v. Superior Court, 2006 Cal. LEXIS 8354 (Cal. July 10, 2006), the court ruled that separation from employment do not need to be involuntary in order to trigger the duty to pay at the moment of separation or waiting time penalties. The California Supreme Court’s ruling affects employers who use temporary employees, and casual or day laborers the most. The court held that an employee who is terminated for good cause should be entitled to prompt payment as well as an employee who completed an assignment.

In Harris v. Investor’s Bus. Daily Inc., 138 Cal.App.4th 28 (Cal. App. 2d Dist. 2006), The court narrowed the concept of commission based compensation. In the case, telemarketers sued under California’s unfair competition law for overtime. The court rejected the argument that defendant did not have to pay overtime because the employees were paid by commission and were thus exempt. Under California law, employees are paid on commission only if compensation is a percent of the price of the product or service sold. In the case, the employees were paid on a point system because the pay was based on sales points, incentive points, adjustment points, commissions, bonuses, charge backs and deductions. The court held that a jury would need to decide whether the employer’s procedures for calculating commissions was an unlawful chargeback.

related entries

Stock and Compensation Dec 21, 2007
Discrimination Dec 21, 2007
At Will Dec 20, 2007
Start Up Agreements Dec 19, 2007
Noncompetes Dec 19, 2007

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