Tag Archives: commission exemption

District Court Judge Defers to USDOL’s Continued Narrow Reading of “Retail or “Service” for Purposes of 7(i) Exemption

“Retail or service” is a classic example of a phrase of which the apparent plain language meaning does not bear a strong relationship to its legal or practical meaning for purposes of application of the 7(i) exemption. In determining whether an employee works in an industry properly deemed “retail or service” (and accordingly establishing eligibility for … Continue Reading

Vermont Court Holds Cable Installer Received Bona Fide Commissions, But Additional Evidence Needed to Establish 7(i) Exemption

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% … Continue Reading

Court Holds Employees Who Handle Internet and Phone Sales Qualify for 7(i) Overtime Exemption

The 7(i) exemption from overtime is not limited to “local” retail or service establishments, and applies to employers who sell nationwide via phone or the internet, a Utah district court has held, rejecting DOL regulations, and finding them antiquated. See Selz v. Invest Tools, Inc., 2011 U.S. Dist. LEXIS 93604 (D. Utah, Jan. 27, 2011).  Plaintiffs … Continue Reading

District Court Finds Commercial Window Washing Company To Be a “Retail or Service Establishment”, But Questions Whether Compensation Received Is a “Commission”

Litigation regarding what constitutes a “retail or service establishment,” under the “7(i)” or “retail sales” exemption continues. We recently reported a district court decision applying the exemption to employees selling precious metals. See La Parne v. Monex Deposit Co., 2010 U.S. Dist. LEXIS 59768 (C.D. Cal. Apr. 29, 2010).  Just a couple of months later, another district … Continue Reading