California Employment Law Update

Tag Archives: commissions

Ninth Circuit Certifies Question To California Supreme Court Regarding Commission Exemption

Peabody v. Time Warner Cable, Inc., 2012 WL 3538753 (9th Cir. 2012) Susan J. Peabody was employed as a commissioned salesperson by Time Warner Cable (“TWC”) for approximately 10 months. Peabody’s commissions were based on the revenue generated by advertising that was aired every broadcast month, which lasted four or five weeks. Peabody also received … Continue Reading

Union Employee’s Claims Were Not Preempted By Federal Law

Sciborski v. Pacific Bell Directory, 205 Cal. App. 4th 1152 (2012) Annie Sciborski sued her former employer, Pacific Bell Directory, after it deducted approximately $19,000 from her wages to recover a $36,000 sales commission that had been paid to her. After a three-day trial, the jury found Pacific Bell’s wage deductions violated the Labor Code … Continue Reading

Appeals Court Clarifies Scope of Commissioned Salesperson Exemption

In a case possibly signaling a new direction in California wage and hour law, a California appellate court ruled Friday that a class of car dealers fell within the commissioned salesperson exemption to California overtime laws despite receiving flat fee commissions instead of commissions calculated as a percentage of the price of the cars sold.… Continue Reading

Sales Representative Was Not Entitled To Post-Termination Commissions

Nein v. HostPro, Inc., 174 Cal. App. 4th 833 (2009) Randy Nein was employed by HostPro as a salesperson. In December 2000, he approached AT&T and suggested that HostPro provide web-hosting services to some of AT&T’s business customers. The transaction was still being negotiated a year later when Nein’s employment was terminated. He filed this … Continue Reading

Sales Representative Was Not Entitled To Post-Termination Commissions

Nein v. HostPro, Inc., 174 Cal. App. 4th 833 (2009) Randy Nein was employed by HostPro as a salesperson. In December 2000, he approached AT&T and suggested that HostPro provide web-hosting services to some of AT&T’s business customers. The transaction was still being negotiated a year later when Nein’s employment was terminated. He filed this … Continue Reading

Sales Commission Advances Were Not “Wages” And Thus Were Properly Subject To Chargebacks

Koehl v. Verio, Inc., 2006 WL 2615515 (Cal. Ct. App. 2006) Jeffrey Koehl, et al., worked as sales associates for Verio, an Internet service provider. Sales associates earned base salaries of between $40,000 and $75,000 plus commissions based on their sales volumes. If a customer cancelled an installation order before paying for the first three … Continue Reading

Chargeback Against Commissions For Canceled Orders Did Not Violate Labor Code

Steinhebel v. Los Angeles Times Communications, 126 Cal. App. 4th 696 (2005) Kurt Steinhebel and other telesales employees of the Los Angeles Times sold newspaper subscriptions and received commissions for those sales. Under the Telesales Agreement, a “chargedback order (when a customer does not keep the paper for at least 28 days)” was not a … Continue Reading
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