A New Direction For Commission-Only Compensation In Mass.

Law360 (July 12, 2019, 1:11 PM EDT) -- A recent ruling by Massachusetts’ highest court has changed the way employers with commission-only compensation plans must pay their employees going forward. On May 8, 2019, the Supreme Judicial Court held in Sullivan v. Sleepy’s LLC et al. that employees compensated on a 100% commission basis are entitled to separate and additional compensation for overtime and Sunday work, even where the employee’s total compensation is equal to or greater than 1.5 times the minimum wage for those overtime and Sunday hours.[1]

By overturning 16 years of guidance from the Massachusetts Department of Labor Standards, the Sullivan decision may signal the start...

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