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ARTICLE · 02 SEPTEMBER 2014

US Employment Litigation Round-Up For August 2014

Mayer Brown
Mayer Brown
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Mayer Brown

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The California Supreme Court recently issued a unanimous decision in Peabody v. Time Warner Cable, Inc., clarifying several issues regarding employer commission plans.

United StatesEmployment and HR
Andrea Weiss
Andrea Weiss
Ruth Zadikany
Ruth Zadikany
Lori Zahalka
Lori Zahalka
Marcia Goodman
Marcia Goodman
John Zaimes
John Zaimes
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Keywords: employer commission plans, NLRB, McDonald's, joint employer, franchisees, collective bargaining agreement, employee rights, overtime, Coca-Cola,

California Supreme Court Ups the Ante for Employers to Meet the Commissioned Employee Exemption

Decision: The California Supreme Court recently issued a unanimous decision in Peabody v. Time Warner Cable, Inc., clarifying several issues regarding employer commission plans. Under Time Warner's commission plan, employees had to meet three specified conditions to "earn" their commissions. Once earned, the commissions were paid in the last biweekly paycheck of each calendar month, in the month after the commission was earned: e.g., a commission earned in November was paid in the second paycheck for December.

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