When Commissioned Employees Are Entitled to Overtime In California

Employment law in California is different from federal law and, in some respects, can more onerous for employers. One example is the so-called “commissioned employee” overtime exemption, which allows certain businesses to avoid paying overtime wages to some commissioned workers.

In the 2014 case Peabody v. Time Warner Cable Inc., the California Supreme Court clarified some requirements of the state law exemption when it decided that an employer may not attribute commission wages paid in one pay period to other pay periods in order to satisfy California’s compensation requirements. Read more.