Car Sales Incentives Count Toward Minimum Wage, DOL Says

Law360 (June 25, 2020, 5:22 PM EDT) -- Car dealerships can use incentive payments from automakers to help meet their obligation to pay salespeople minimum wage, and workers who sell merchandise out of mobile trucks don't need to be paid minimum wage at all, the U.S. Department of Labor said in a quintet of opinion letters released Thursday.

Responding to a query from several car dealerships, the DOL addressed how dealers' obligation to pay their employees is affected by "incentive payments" that manufacturers pay to boost sales pay under the Fair Labor Standards Act if the dealer and its employees agree to count third-party payments as wages.

"Given these...

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