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View Diary: House GOP proposes eliminating overtime pay for workers in exchange for family friendly sack of sh!t (98 comments)

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  •  not so in california. it all has to do with "time (1+ / 0-)
    Recommended by:
    Losty

    cards".  if you're required to punch in and out, you are eligible for overtime. period.

    strict sales on commission (real estate, etc.), there aren't overtime laws, but if you are told to punch in and required to put in a set number of hours a week, you are not an exempt employee.

    california labor laws are quite clear on this, no matter how the employer tries to "sell" it otherwise.

    the caveat is that your overtime hours are paid ONLY when your commission doesn't equal 1 1/2 times the minimum wage for ALL hours worked.

    if the sales commissions for a month were greater than the 1 1/2 rate, then no overtime - but if your sales were less, you are entitled to overtime.

    most car sales reps don't consistently make 1 1/2 times minimum wage per month - especially in the economy for the last five years of sales drop off.

    here's a simplified version of the code from the chron:

    Overtime Requirements
    Under certain circumstances, commission-based employees are entitled to overtime compensation. In order for your business to be exempt from paying overtime to commission-based employees, you must have a retail- or service-based business that generates at least 75 percent of its income from sales activities within an industry that is recognized as a retail sales environment. In addition, your commission-based employee must earn, at minimum, one and one-half times the minimum wage each hour. Therefore, if your commission-based employee does not earn at least the minimum overtime rate when working more than 40 hours each week, you are required to pay her the difference in earnings so her total earning is equivalent to the minimum wage, plus any applicable overtime.
    Overtime Pay

    The Fair Labor Standards Act defines overtime as additional hours that an employee works over a standard 40-hour week. If an employee exceeds 40 hours and is not exempt from the FLSA standards, he must receive compensation for those additional hours at a rate of one and one-half times his hourly rate. For instance, a Texas laborer who works 42 hours within one week at minimum wage should receive a pay of $290 for 40 hours, plus an additional $21.75 for two hours of overtime. This overtime rate is calculated at a minimum wage of $7.25 multiplied by 1.5--or $10.875 per hour.

    furthermore, that auto salespersons are required to belicensed by the state of california (and those licenses are supposed to be posted visibly in a public place in the dealership, btw), such employees are NOT considered independent contractors.  the sponsor of said license is the business for whom the rep works - it involves fingerprinting and background checks through the state.

    most auto sales people are either unaware of the law or they are new to the industry OR they are old timers who make enough to be over the limit.  

    EdriesShop Is it kind? is it true? is it necessary?

    by edrie on Thu Apr 04, 2013 at 08:39:00 AM PDT

    [ Parent ]

    •  I get you and agree with you on the punch-card (0+ / 0-)

      argument/law.

      Even if you're not an IC, you can be strictly draw/commission, but then you wouldn't need to punch the time clock, would you? I assume they do that at the dealership so you can't sell 3 cars in one day and then not show up till next week...which is a luxury an outside salesperson can afford.

      I see what you did there.

      by GoGoGoEverton on Thu Apr 04, 2013 at 08:47:01 AM PDT

      [ Parent ]

      •  heh - selling three cars a day is no guarantee (3+ / 0-)
        Recommended by:
        kyril, high uintas, Tinfoil Hat

        for the next 30 days.  i HAVE sold as many as five in one day - and still had a rotten month.  folks seem to think that sales reps make a ton of money - it ain't so.  even on luxury cars, the top commission is rarely over $250 - and, considering selling 8 cars a month was a high number (many sales reps had only 3-5 cars per week, some only 5 per month) where the commission might only be $75 - $150 - do the math!  that went against the "draw" - and most reps were lucky to pull anything OVER that draw (of $1000 to $2500/month, depending on the dealership)

        the second dealership i worked, i made a total of $1,100 for one month - i made JUST minimum wage - no sales, slow month and i was the new kid without an established customer base at that dealership).

        so, when you're beating down the car salesperson for the "best" price, remember, it is the sales commission that is eaten first!  we got commission based on how much over the cost of the vehicle - and when we sold below cost (frequently done to make the quarterly numbers), we saw only a pittance of a commission.

        it's an ugly business from the sales reps' perspective as much as the customer's.  i was successful because i laid everything out on the table - the actual cost to the dealership and explained why we needed a certain percent to stay in business and where it went.  my customers respected that and respected that i was there for them with any problems they might have - from user training to vehicle issues.  they got their money's worth when i sold them a car.

        all said, i don't think i'd do it again - it was brutal - 8:30am to 7pm average day and then there were the 8:30am to 11:30 pm exceptions (like christmas eve with one jerkoff customer who was determined to save just another $200 - then went home to "think" about it.  he came back two days later and i gave away half the sale to another rep - told the rep if i had to face the bastard, i might just run him over with the vehicle!)  he came back to buy another car a few months later - i walked off on him and gave him to the same rep.  didn't want the money that badly.

        EdriesShop Is it kind? is it true? is it necessary?

        by edrie on Thu Apr 04, 2013 at 09:17:41 AM PDT

        [ Parent ]

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