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Last month the Seventh Circuit drew a distinction between “commissions” and “bonuses” as those terms are used in the Illinois Wage Payment and Collection Act (IWPCA) and its implementing regulations. For employers, particularly those in retail, Sutula-Johnson v. Office Depot informs how employers structure, amend and communicate their employee incentive compensation schemes.
Continue Reading Be Careful What You Call It — Commission Plans In Illinois

As discussed in a prior post, the Department of Labor’s new overtime regulations increase the weekly minimum salary threshold an employee must be paid to maintain exempt status under the FLSA’s “white collar” exemptions. The Final Rule, which becomes effective December 1, 2016, could affect up to 4.2 million employees according to DOL estimates. But an employer hoping to classify its employees as exempt need not meet the new threshold entirely through base salary. Instead, the new regulations allow employers to use bonuses, commissions, and incentive payments to satisfy up to 10% of the minimum salary threshold.
Continue Reading “Catching Up” on Exempt Status—Using Bonuses and Incentive Payments to Meet the FLSA’s New Salary Threshold