Commission-only salespeople entitled to overtime in Massachusetts

Massachusetts employers with nonexempt employees who are paid entirely in commissions or receive advances toward their commissions, called draws, must be careful about paying overtime, according to a new case. In a recent decision, the highest state court in Massachusetts—the Supreme Judicial Court (SJC)—determined that nonexempt 100% commission employees are entitled to additional compensation when they work more than 40 hours in a given workweek and to Sunday pay even if their total compensation for the workweek equals or exceeds minimum wage for the first 40 hours and at least 1 times the minimum wage for the hours over 40. So what can Massachusetts employers learn from the case?

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