Employees Paid on a Commission Basis Must Be Paid a Separate Minimum Wage for Rest Periods

March 24, 2017
HR Law Talk Blog

Employers who pay employees commissions should evaluate their compensation schemes to ensure compliance with California law in light of the California Court of Appeals’ recent ruling in Vaquero, et al. v. Stoneledge Furniture, LLC. In Vaquero, the court of appeals held that employers who pay employees on a commission basis must pay employees a separate minimum wage for rest periods. Paying employees purely on draw and commission is no longer sufficient, even if the average wage equals, or is in excess of, the statutorily required minimum wage.

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