Legal Question in Employment Law in California
Federal Minimum Wage Requirements
I was hired by a company to do outside sales and was lead to believe there would be active accounts. Based on good faith, I signed an employee agreement which stated that any draws against commissions not met by sales were to be paid back. I would not have signed this agreement had I known the position was based on cold calling.
I started work and found there were no active accounts. 2 weeks later I received an email asking me to sign a new contract that would have made me a 1099'ed employee. I refused to sign it. After 5.5 weeks of employment and no active accounts assigned to me, I resigned. 2 days later I received a bill for the draw that I received that was not met by sales.
I contacted the Federal Division of Wages & Hours and filed a complaint with them against the company and was crystal clear in describing the situation. They researched my issue and stated that I am entitled to the Federal minimum wage of 5.15 an hour for the time I worked even though I was an outside commissioned sales person. I checked the Dept of Labor's website where it clearly states that outside sales people are exempt from this law. I am confused now.
Do I have any other recourse in this matter?
Thank you.
2 Answers from Attorneys
Re: Federal Minimum Wage Requirements
One of the reasons you may be confused is that the company called your job outside sales. Based on your description, you were actually doing a lot of cold calling, which could mean that you were not an "outside salesperson," as both federal and state law describe the term. Remember, that California law is generally more generous than federal law regarding overtime and the like. You may be able to recover the minimum wage and penalties both under federal and state law. Good luck.
Re: Federal Minimum Wage Requirements
YOU WILL BE BETTER OFF TRYING TO ENFORCE THE CALIFORNIA LAWS BY FILING A COMPLAINT WITH THE CALIFORNIA LABOR COMMISSION. THERE IS A GRAY AREA AND A FINE LINE BETWEEN THE DEFINITION OF AN "EMPLOYEE" AND "INDEPENDANT CONTRACTOR". IF YOU LIVE IN THE SOUTHERN CALIFORNIA AREA, CALL US AT 213.388.7070 FOR FURTHER DISCUSSION.
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