Employers Can’t Retroactively Apply Commissions to Satisfy Wage Laws
The Massachusetts Supreme Judicial Court took on an issue of first impression regarding overtime pay of inside salespeople paid entirely by commission plus draws. The sales team alleged their employer’s payment policies violated the Wage Act and the overtime and Sunday pay statutes. The employers did not pay employees any additional compensation beyond recoverable daily draw and any commissions, even though those payments always equaled or exceeded minimum wage times number of hours they worked up to 40 hours, plus one and one-half times number of hours they worked over 40 hours or on Sunday. The Court put an end to that practice holding the salespeople were entitled to separate and additional overtime pay beyond their draws and commissions for hours worked more than 40 in a given work week and Sunday premium pay.