Q. What are the new developments regardingfor commissioned sales employees?
A. The New Jersey Department of Labor recently changed the overtime exemption laws, adopting the “white collar” standard of the Fair Labor Standards Act (). In the change, New Jersey inadvertently eliminated the overtime exemption for sales employees paid by commission, meaning that employers cannot exclude commissioned sales staff from overtime pay.
The “white collar” exemption allows certain administrators, executives, professional and outside sale employees to be considered exempt, and ineligible for overtime pay and certain benefits.
The exemption does not include “insides sales” exemptions.
The New Jersey Department of Labor has acknowledged the flaw and is in the process of coming to a quick solution. However, until the law is changed, employers may be left vulnerable to lawsuits for violations of federal and state.
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