bona fide commission

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In one of the most comprehensive circuit court opinions to address application of Section 207(i) of the FLSA—the provision of the law that allows employers to comply with the overtime provisions of the FLSA by paying commissioned employees of a retail or service establishment at least 1.5 times the minimum wage, instead of their regular…

Identifying two separate bases for finding a motorcycle mechanic ineligible for overtime under the FLSA, Judge Federico A. Moreno granted summary judgment to the Ducati dealership where the mechanic worked, Ducati Miami.  Henriquez v. Total Bike, LLC, 2013 U.S. Dist. LEXIS 179592 (S.D. Fla. Dec. 20, 2013).

In challenging his exempt status, Henriquez first…

As discussed in prior postings, a central issue in determining the application of the FLSA’s “7(i)” exemption is whether the payments to the employee constitute bona fide commissions.  In early July, Judge Gregory Frost of the Southern District of Ohio issued another ruling on this issue, finding that the compensation paid to managers and assistant…

The “retail or service exemption” to the FLSA, sometimes referred to as the “7(i) exemption”, noting the location where it is codified, 29 U.S.C. Section 207(i), has three requirements. While the first requirement, to pay time and one-half the minimum wage for all hours of work, is straightforward, the other two prongs—that an employee receive 50%…