Wage Law

A federal judge in Santa Ana recently approved a $19.5 million settlement of class action overtime claims brought by 1300 insurance sales agents who worked for Automobile Club of Southern California. The agents had been misclassified as outside sales staff, were denied overtime pay and had to buy gifts to promote sales. The case was filed in 1999, and settled only after five years of litigation, including a short trial in 2002. In addition to paying to settle overtime and gift expense claims, the Auto Club agreed to reclassify its agents as non-exempt employees entitled to overtime. Eligible workers will receive an average of $70 per week.

Except within the mercantile industry, which primarily means retail sales staff, a commissioned sales employee is usually entitled to overtime pay, meal and rest breaks and all of the other protections afforded any other class of worker. Even in the mercantile industry, sales staff are entitled to meal and rest breaks. If you would like to have your situation reviewed to see if you have a claim, drop us an email and we would be happy to give you a free evaluation.