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Wage
& Hour
Does
the FLSA require severance pay, sick leave,
vacation or holidays?
No.
The Fair Labor Standards Act (FLSA)
does not require payment for time not
worked, such as vacations or holidays
(federal or otherwise). These benefits are
generally a matter of agreement between an
employer and an employee.
Is
there an overtime payment exemption for
salespeople paid on commission?
Yes.
The FLSA contains an exemption from
overtime pay for employees paid on
commission if the following requirements
are met:
-
The
employer is a “retail or service
establishment”;
-
The
employee is paid on a commission basis (this
can be flat rate);
-
The
employee’s regular rate of pay is more than
one and a half times
minimum wage; and
-
More
than half of the employee’s compensation for
a “representative
period” (not less than one
month) represent
commissions on goods or services.
May
a dealer carry-forward commissions?
Yes.
An OADA member inquired as to the
maximum amount of time that unpaid commission
payments could be carried forward.
Pursuant to an opinion letter dated
February 14, 2001 from the Department of
Labor, a dealership may carry forward unpaid
commissions on an indefinite basis as long as
the statutory minimum wage is paid for all
hours worked in each work week.
As a practical matter, it is
recommended that unpaid commissions are
settled with employees on a monthly basis.
Does
either Federal or
Ohio
law require an employer to pay an employee
his/her final paycheck immediately?
No.
Neither federal nor state law requires an
employer to issue a final paycheck to an employee
on his/her final day of work.
The employer can issue a paycheck to the
employee on his/her regularly scheduled payday.
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