Rest Period Denied for California Workers on Commission Pay

Workers on a commission pay system may have been systematically denied rest breaks at certain California companies.

California workers on commission pay have filed lawsuits against employers and former employers for failing to pay rest breaks.

A court ruling recently upheld the California labor laws that require these employers to pay their commission pay employees for rest breaks. While the rest of their work is paid on commission, rest breaks are required at a separate hourly rate.

California commission pay employees that may be affected by this ruling include those working in retail, banking, insurance, auto, and heath industries, as well as any other industry that uses inside sales employees on a commission pay basis.

California Court Ruling

The California Court of Appeals, 2^nd District, ruled in February that employers are required to pay the workers they compensate with commission pay for their rest break periods on a separate, hourly basis.

Companies are required to treat their employees according to federal and state labor laws, including the California labor laws regarding rest breaks. California employers are required to provide their employees with rest breaks, and even in the case of employees working for commission pay, compensate for rest breaks with hourly wages.

California Labor Laws

Other California labor laws that some employers may attempt to circumvent, taking advantage of their employees, include rest periods, unpaid time, unpaid overtime, and unpaid expenses. California labor laws require that employers allow employees to take a 10-minute break for every four hours they work.

The State of California Department of Industrial Relations provides information regarding a penalty: “If an employer does not authorize or permit a rest period, the employer shall pay the employee one hour of pay at the employee’s regular rate of pay for each workday that the rest period is not provided.”

Commission pay workers may also be at risk of being underpaid for their work. Even their work is done on a commission pay basis, that commission should never fall below minimum wage for all hours worked.

Many employees may also pay for necessary work expenses like training, seminars, phone charges, mileage, and many other such expenses. Employers are required to cover these kinds of necessary or business-related expenses.

Commission pay workers may also be entitled to overtime pay if their commission pay does not exceed the one-and-a-half times minimum wage overtime pay requirement.

Commission Pay Worker Rest Break Lawsuits

California workers paid strictly on a commission pay basis who are not being paid an hourly wage for their rest breaks may be able to file a lawsuit to pursue compensation.

If you are a California worker on commission pay and your employer has failed to follow California labor laws regarding rest breaks, overtime pay, or another rule, you may be entitled to compensation.