Overtime For Inside Salespersons in California

For employees whose job duties primarily entail inside-sales, a recent California appellate decision has restricted, but in our opinion, left the door open, for such inside-sales personnel to make an overtime claim against their employers. According to Labor Code Section 204.1, commission is defined as "compensation paid to any person for services rendered in the sale of such employer's property or services and based proportionately upon the amount or value thereof." However, the Court of Appeal in Areso v. Carmax (2011) 195 Cal.App.4th 996, interpreted Section 204.1's definition of commission in a way that significantly broadened the previous definition of what constitutes commission/wages. As a result of such...

Read more