Avoiding Labor Entanglements for Commission-Earning Employees in a Changing Legal Landscape

While commission-based compensation has historically been popular, in their article "Avoiding Labor Entanglements for Commission-Earning Employees in a Changing Legal Landscape," Laura Reathaford and Benjamin Stockman explore whether this popularity will wane in light of class action litigation and settlement agreements that have cost employers millions of dollars because of allegations that commission-based compensation plans violate wage and hour laws. This article not only outlines administrative and legal changes for employers who compensate employees on commission, but also searches for ways to minimize exposure.

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