People Processes

[youtube https://www.youtube.com/watch?v=t2Q8P2LF124] The Department of Labor has posted a clarification letter about the FLSA and addresses the question of whether commercial drivers can be paid solely on a commission basis. The FLSA exempts from its overtime pay requirements certain employees of “retail or service establishment[s]. The exemption applies to any employee: who works at a retail or service establishment, whose employee’s regular rate of pay exceeds one and one-half times the applicable minimum wage in the workweek in which he or she works overtime, and whose earnings in a representative period consist of more than 50% commissions The United States Supreme Court recently held that exemptions under the FLSA deserve a “fair (rather than narrow) interpretation” because the exemptions are “as much a part of the FLSA’s purpose as the overtime-pay requirement.” Encino Motorcars, LLC v. Navarro, 138 S. Ct. 1134, 1142 (2018) (internal quotation marks and citation omitted). Accordingly, WHD must apply a