The Supreme Judicial Court (SJC) of Massachusetts ruled in May 2019 that inside sales-persons who are paid 100% commissions are entitled to overtime pay and Sunday pay.
The case involved sales-persons at Sleepy’s. They were paid on a 100% commission basis with no extra pay if they worked more than 40 hours per week or worked on Sundays. Massachusetts has laws that require overtime pay and Sunday pay.
The employer argued that the amount of money these employees made from commissions exceeded the minimum wage and even exceeded 1 ½ times the minimum wage for overtime. The SJC rejected this defense.
So, even if a commission sales-person makes $1,000 in a week from their sales, if they worked 50 hours, they are due another $180 for their 10 hours of overtime pay ($12 min. wage x 1.5 x 10 hours = $180).
This ruling will affect all inside sales-persons in Massachusetts who are working overtime but only being paid commissions. Employees in Massachusetts can sue for the previous three years of overtime and if they win obtain triple damages, and an order that the employer must pay their attorneys’ fees.