Archive
Employment Law Clip: Protective Employment Agreements – Protecting Client Relationships & Confidential Information
This video discusses the use of employment agreements to protect client relationships and confidential information. We describe the three types of protective agreements: non-competition agreements, non-solicitation agreements and non-disclosure agreements, and address steps employers should take to put enforceable agreements into place.
Want more information? Try some of our other resources on this topic:
- Enforcing Non-Competition Agreements
- Material Job Changes May Void Employee’s Non-Compete
- ELA: Important Terms to Include in Non-Compete Agreements
- Governor Patrick Administration Supports “Outright Elimination”
of Non-Compete Agreement Enforceability
Please feel free to contact any member of our Employment Law Group with any questions on Massachusetts wage payment laws.
MBBP’s Employment Law Clip Series provides quick, easy-to-digest snapshots of common Employment issues, as well as practical information on how to avoid complicated, expensive and time-consuming pitfalls. Stay tuned for the next topic on FLSA requirements for internships.
Are Your Commissioned Sales Employees Entitled to Minimum Wage and Overtime?
Many employers use commission payments to increase the productivity of their sales force. Commissioned sales people can earn significant compensation. But, are commissioned sales people also entitled to minimum wage and overtime?
The federal Fair Labor Standards Act(FLSA) establishes a minimum wage and requires that employers pay overtime, or 1.5 times the employee’s regular rate of pay, to employees who work more than 40 hours in a workweek. The FLSA’s minimum wage and overtime requirements apply to all employees, including commissioned employees, unless the employee comes within one of the statutory exemptions to the FLSA.
Many commissioned sales employees come within one of two statutory exemptions to the FLSA, the “outside sales exemption” or the “inside/retail sales exemption.” An employee is exempt under the outside sales exemption if the employee’s primary duty is making sales or obtaining orders or contracts for services or the use of facilities from paying clients or customers, and the employee is customarily and regularly engaged away from the employer’s place of business. Qualified outside sales people are exempt from both minimum wage and overtime requirements.
Commissioned sales people employed by a retail or service establishment are exempt from overtime (but not minimum wage) under the inside/retail sales exemption if (1) the employee’s regular rate of pay (including commissions) exceeds one and one-half times minimum wage and (2) more than half the employee’s total earnings are in the form of commissions.
If a commissioned sales employee does not come within one of these two narrowly defined exemptions (sales people will usuallynotqualify for other FLSA exemptions) the sales employee is not exempt and is entitled to overtime on top of commissions.
For help determining whether your sales force is exempt, or for more information on this topic, please contact a member of our Employment Law Group.
Employment Law Clip: Employee Terminations Under the MA Wage Payment Law
Massachusetts employers, are you preparing to terminate employees? If so, watch this brief video highlighting important aspects of the Massachusetts Wage Payment Law that you may not be aware of when firing or laying off an employee or employees.
Want more information? Try some of our other resources on this topic:
- Payment of Commissions to Terminated Employees
- MA Wage Act Can Cover Out-of-State Employees
- Complying with the Massachusetts Wage Act as the Law’s Reach and Impact Continue to Expand
- Wage & Hour Laws: Increasing Legal Risks for Businesses
Please feel free to contact any member of our Employment Law Group with any questions on Massachusetts wage payment laws.
MBBP’s Employment Law Clip Series provides quick, easy-to-digest snapshots of common Employment issues, as well as practical information on how to avoid complicated, expensive and time-consuming pitfalls. Stay tuned for the next topic on Restrictive Employment Agreements.
Scott Connolly Speaks at MCLE Employment Seminar
On Friday, February 28, 2014, MBBP Employment Attorney Scott Connolly served as a panel speaker at the Massachusetts Continuing Legal Education’s (MCLE) annual seminar on Proving & Valuing Damages in Employment Cases. Among the topics Scott covered from the defense perspective were whether and how to effectively use financial experts at trial, ways for defendants to avoid/minimize punitive damages, limiting emotional distress damages, and whether unemployment benefits should be deducted from back-pay awards. Other members of the distinguished panel were Honorable Peter M. Lauriat, Superior Court Justice, Eugenia M. Guastaferri, Senior Hearing Officer at the Massachusetts Commission Against Discrimination and employee-side advocates Inga S. Bernstein and David E. Belfort. Scott defends clients from employment-related lawsuits before state and federal courts and agencies.
Please feel free to contact Scott with any questions.
Employment Law Clip: Pitfalls of Using Independent Contractors
Many businesses use “independent contractors” to augment their regular workforce. They see advantages to using trained, non-employee workers with specialized skills who can provide needed services on a short-term or long-term basis.
However, the ability of businesses to classify workers as independent contractors is not unchecked. Businesses cannot avoid employer obligations simply by designating certain workers as independent contractors.
Please feel free to contact any member of MBBP’s Employment Law Group with questions on independent contractors.
Want more information? Try some of our other resources on this topic:
Massachusetts Employment Law Blog 