Commission-based compensation is a powerful driver of performance, but when not carefully managed, it can expose organizations to significant legal and financial risk. Case in point:
A lawsuit involving commission wages at tech company Oracle has been tentatively settled, with the employer agreeing to pay $15.5 million to end the long-running dispute.
The suit, which was filed in 2015 in a California state court, accused Oracle of making several missteps concerning the proper payment of commission wages under state law.
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Attorneys at three firms teamed up to file the suit under the Private Attorneys General Act, also known as PAGA, a California state law allowing employees to sue their employers on the state’s behalf for alleged violations of state labor law. As this case shows, it also provides for potentially significant penalties.
When the complaint was initially filed in September 2015, the suit named a single plaintiff who worked as a sales representative and sued on behalf of all similarly situated employees. In February 2018, a second named plaintiff was added.
The suit presented a litany of alleged violations of the California Labor...
Business The Managing Director of PWAN Plus Business Concerns Ltd, Prof. Julius Oyedemi has refuted allegations made by social media influencer, Scott Iguma, over the ownership and allocation of la...