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Compensation Agreements California

It is questionable whether an employer`s wage practices are really commissions. The labour code defines commissions as compensation for benefits provided on the sale of the employer`s property or services and is proportionately based on their amount or value. And some types of payments are not considered commissions for the purposes of the written obligation. The new statutes exclude, among other things: (1) short-term productivity premiums paid to retail employees, (2) temporary and variable incentive payments that increase payment under the written contract but do not reduce it, and (3) bonus or profit-sharing schemes, unless they contain a fixed percentage of the turnover or profits of the work to be performed. The hourly rate of pay for rest and rest periods must be the same as the hourly rate (on average on the work week) that an employee earned during the work week for the period during which he or she was doing work. If, for some reason, this average hourly rate is less than the minimum wage, then the worker must be paid the minimum wage. Q. If an employer pays a basic hourly rate for all hours worked (for example. B the minimum wage), but that it also pays additional unit wage compensation, is it sufficient for the employer to pay a minimum wage only for the worker`s breaks? All California employers must ensure that all commission agreements: as stated in the italic language above, an employer is not required to indicate the total number of hours of another unproductive time, the offset rate or gross wages paid for that period if the employer “pays, in addition to the payment of a unit rate, an hourly rate of at least the current minimum wage for all hours worked. , as permitted by the “safe harbor” language in the subdivision (a),7). A.

There is no provision in the law that says it must declare the law in force. The compensatory conditions for rest and recovery periods and other non-performing periods defined in Subdivision (a) of Section 226.2 apply from the time the statute came into force (January 1, 2016) and do not change the law as it existed before that date. Questions relating to what was required by the legislation in force prior to January 1, 2016 may be the subject of ongoing litigation and litigation in the courts. 14 The agreement must indicate how commissions are calculated and paid. 15 Labour Code 204.1 defines commissions as follows: “Commission compensation is the compensation paid to each person for the services provided on the sale of real estate or services provided by the employer and proportionately based on the amount or value of the employer.” ↥ A. The labour code, section 226.2, expressly states in the opening paragraph that it “must not be interpreted in the sense that minimum wage or overtime allowance requirements or the obligation to change the work allowance must be limited or changed. to compensate workers for all hours worked under another law or local regulation. This means that when an employer pays a basic hourly rate of at least the minimum wage applicable for all hours of a worker`s work, in addition to a unit allowance from the employer, it is considered to be compliance with the conditions of compensation for other non-productive periods. Agnew v. Cameron (1967) 247 Cal.App.2d 619, 624 [ “In the absence of explicit indications or convincing circumstances suggesting a contrary agreement, advances paid to a worker are considered a payment instead of wages and setting the minimum wage for the worker↥ The requirement for compensation for other non-performing periods is simply that they be paid at or above the prevailing minimum wage. In general, this means that an employer may be exempt from liability for damages and other legal and other penalties for periods prior to January 1, 2016, when the employer meets all statutory requirements.