By: Lizbeth V. West, Esq.

The Ninth Circuit has referred the Peabody v. Time Warner Cable case to the California Supreme Court to answer this question.

Under the commissioned salesperson exemption, or the “inside sales exemption” in Wage Orders 4 and 7 (ONLY) an employee is exempt from overtime if his or her earnings: 1) exceed one and one-half times the minimum wage; and 2) more than half of the employee’s compensation represents commissions. Under California’s minimum hourly wage of $8.00, an inside sales commissioned employee must earn at least $12.00 per hour to qualify for the exemption. Continue Reading “Inside Sales Exemption” – Are Commissions Calculated When Earned or When Paid?