Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
In recent years there has been substantial litigation regarding whether and how employers may satisfy California minimum wage requirements for compensation plans involving commissions. In Peabody v. Time Warner Cable, Inc., the California Supreme Court cleared up at least one source of confusion by concluding that employers must actually pay sufficient wages each pay period to satisfy the state's minimum wage requirements and the minimum compensation requirements for California's commission sales exemption. Employers may not allocate commissions paid in one pay period to satisfy minimum compensation shortfalls in prior pay periods. Continue reading this article here.