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Employment Law Blog

Employment Law Blog

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. Overtime for Inside Sales PeopleAccording 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...

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Overtime for Out of State Employees Who Perform Work in California

According to California Labor Code § 510, non-exempt employees must be compensated at 1-1/2 times the regular rate of pay for hours worked in excess of 8 in a workday or 40 in a workweek. Overtime HoursAlso, employers must pay overtime to employees for the first 8 hours worked on the seventh consecutive workday in a workweek. In addition, employees must be compensated at 2 times the regular rate of pay for hours worked in excess of 12 hours in a workday and after the first 8 hours worked on the seventh consecutive workday in a workweek. In Sullivan v. Oracle Corp., the California Supreme Court decided that California Labor Code §510 applies to all non-exempt employees working in California,...

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Negotiating The Terms Of An Employee Separation Or Severance Agreement

When an employer terminates an employee from his/her employment, the employer in many cases will offer the employee a separation or severance agreement that provides continuing pay and/or benefits for several weeks or even several months. Severance AgreementUnless such separation or severance pay was offered as a hiring or retention incentive (i.e., contractually guaranteed) or pursuant to the closing of operations for certain large employers, separation or severance pay is not legally required. Employers often offer small amounts of separation or severance pay to avoid the prospect of protracted and expensive litigation with former employees. In exchange for the severance benefits, the employer receives the employee's written agreement not to sue the employer at any time in the future...

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Class Member Individual Releases In Employment Cases

California employees have been able to recover millions of dollars from their employers for unpaid wages through class actions in the past several years. Class Action Settlement Superior Court actions for unpaid wages filed by individuals who seek to represent a large number of similarly situated employees has proven to be an effective method of recovering unpaid wages for thousands of California employees, the majority of whom were unaware that they were entitled to wages they had not received from their employers. The recent appellate decision in Chindarah v. Pick up Stix (2009) 171 Cal.App.4th 796, however, provides a method for employers to circumvent the class action process by employees. In Chindarah, a number of employees of the Chinese restaurant...

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