Commissioned Employees: Cal. Sup. Ct. Holds Commissions Are Counted in the Pay Period Actually Paid
Today the California Supreme Court issued an opinion regarding whether an employer may attribute commission wages paid in one pay period to other pay periods in order to satisfy the requirements of California's commissioned sales exemption. Peabody v. Time Warner Cable, Inc., Case No. S204804, __ Cal. 4th __ (July 14, 2014). The court concluded that commissions are counted in those pay periods in which they are actually paid:
[A]n employer satisfies the minimum earnings prong of the commissioned employee exemption only in those pay periods in which it actually pays the required minimum earnings. An employer may not satisfy the prong by reassigning wages from a different pay period.
Id. at *9. You can read more here.