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Wage and Hour › Sales Commissions › Compensation & Benefits

Constangy, Brooks, Smith & Prophete, LLP

MA Wage Act doesn’t cover profit-based incentive pay, judge rules

Constangy, Brooks, Smith & Prophete, LLP on

A recent decision from a federal court in Massachusetts reinforces the narrow scope of the Massachusetts Wage Act as it applies to incentive pay. In Noreke v. Gideon Taylor Consulting, LLC, decided August 14, the court...more

Seyfarth Shaw LLP

New Jersey Supreme Court Finds Commissions Are Considered “Wages” Under State Law

Seyfarth Shaw LLP on

On March 17, 2025, the New Jersey Supreme Court ruled that commissions are considered “wages” under the New Jersey Wage Payment Law (“NJWPL”). This critical decision clarifies that commissions are direct monetary compensation...more

Seyfarth Shaw LLP

Asking Again-Do You Really Want to Keep Paying Commissions to the Salesperson You Fired? (Update)

Seyfarth Shaw LLP on

We previously wrote about the procuring-cause doctrine here. As a refresher, the procuring-cause doctrine provides that a salesperson or other agent who contracts for a commission becomes entitled to payment of the commission...more

Seyfarth Shaw LLP

First Circuit Finds Commission Plan’s Windfall Provision Permissible Under Massachusetts Wage Act

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In Klauber v. VMWare, the First Circuit upheld an employer’s use of a provision in its compensation plan that allowed it to modify commissions on certain large or atypical sales. These “windfall” clauses are common in sales...more

Butler Snow LLP

Texas Supreme Court to Texas Employers: Employee Sales Commission Agreement Terms Better be Clear or Commissions Could be Owed...

Butler Snow LLP on

The Texas Supreme Court recently established a “default rule” which, as the dissent puts it, may “threaten the expectations of Texas at-will employers and employees who have agreed to a commission structure but, for whatever...more

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