A recent California appellate court decision held that commissioned sales employees must be paid separately for mandatory rest periods (Vaquero v. Stoneledge Furniture, LLC, 9 Cal.App.5th 98 (2017)).
The court found that the commission plan in this case did not provide separate compensation for rest breaks, even though the plan ensured that employees always received more than the minimum wage for every hour worked.
This case will have a significant impact on employers who pay employees even partly on a commission basis. Although we could eventually see this case challenged, it is currently the law.
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