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09 February 2019

Unpaid Rest Period for Commissioned Based Employees

Unpaid Rest Period for Commissioned Based Employees

 

Date: February 8, 2019

Case: San Diego Superior Court

Client: Call Center Employees Paid Solely on a Commission

Employer: Accredited Debt Relief, LLC

Settlement: $2,000,000.00

Legal Theory: Unpaid Rest Periods

 

The California wage and hour attorneys at the JCL Law Firm obtained final approval of a $2 million class action settlement on behalf of approximately 475 settlement class members. Like all other non-exempt California employees, employees paid solely on a commission basis are entitled to 10-minute paid rest break for every four-hour work period, or major fraction thereof.  However, unlike hourly compensated employees, employees paid solely on a commission basis must get separate compensation for paid rest periods. Vaquero v. Stoneledge Furniture, LLC., 9 Cal.App.5th 98 (2017). An employer that fails to separately compensate its commissioned employees for paid rest periods violates California labor laws.  If an employer, fails to separately compensate its commissioned salespeople for paid rest breaks, the employer must pay the employee one additional hour of wages for each workday the employer violates the paid rest break requirement. In this case, the California employer failed to separately compensate its sales persons paid solely on a commission for their paid rest periods.  Thus, the employer denied these call center employees of their paid rest periods. The experienced employment class action attorneys at the JCL Law Firm negotiated a $2 million settlement within twelve months of filing the action.

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