The legal inquiries surrounding the banking sector have been widely acknowledged, and recent bank class action lawsuits targeting major players such as Bank of America Corp, Wells Fargo, and JPMorgan Chase Bank have further highlighted dubious practices within the industry.
Moreover, amidst these high-profile developments, a less-publicized concern has come to light: instances of bankers and bank employees experiencing commissions that fall below the legally stipulated standards.
A bank employee in California can earn through hourly and fixed wages as salaries and receive additional pay based on commissions, standing out as two of the most common ways to get paid.
Banks must ensure that all employees, including those in various positions within the institution, are paid at least the applicable minimum wage for the hours worked. They are obligated to maintain records of employees’ working hours and cash compensation reports to ensure compliance with minimum wage standards.
Likewise, the payment of commissions to employees must be followed within the specific regulations to safeguard their rights. Time spent on tasks unrelated to earning sales commissions must also be compensated separately at the state’s average salary.
Overtime is applicable when an employee works more than 8 hours in a day, exceeds 40 hours in a week, or works over 6 consecutive days in a workweek. The usual overtime rate is 1.5 times the regular hourly pay, referred to as “time and a half.”
However, if an employee works beyond 12 hours in a day or more than 8 hours on the seventh consecutive workday of the week, the overtime rate becomes twice the regular hourly pay.
Certain employees are exempt from overtime requirements, falling under the “generally-exempt” classification. Exempt employees are those not subject to specific wage and hour laws. Employers can claim exemptions only if the employee unequivocally meets the criteria for exemption. To qualify as a generally-exempt employee, the individual must:
California also provides exemptions for certain employees, including those falling under the “commissioned sales” exemption and the “outside salesperson” exemption.
The “commissioned sales” exemption applies to employees who meet specific criteria:
This exemption is applicable only if both conditions are met within a pay period. If an employee’s earnings fall short of one-and-a-half times the minimum wage during a pay period, overtime compensation must be provided for overtime hours worked in that period.
For outside salespeople who only receive commissions upon customer payment, their exemption status varies based on commission collection. They may be exempt during periods when customers pay for purchases but nonexempt when commissions are not collected.
In California, a commission stands as a form of compensation granted to individuals for the sales-related services they provide. Under a commission-based arrangement, the extent of an employee’s remuneration hinges upon the quantity or value of the item that has been sold. The requirement for these payments are to be given no less than twice per month to the employee.
Typically, the calculation of an employee’s commission is based on either:
If a portion or the whole of an employee’s compensation is linked to commissions, the California law requires the compensation arrangement to be documented in writing. This written commission agreement must outline the method for calculating and disbursing your earnings through commissions.
You must also receive a copy of this written commission agreement. The bank is obligated to request the employee’s acknowledgment of receipt, serving as evidence that the employee has been furnished with a copy of the agreement.
If there are changes in the agreement, your employer, in this case, the bank generally retains the authority to introduce a new commission agreement and may stipulate that future employment hinges on the employee’s acceptance of the revised terms.
However, once a commission has been earned based on an existing agreement, you are entitled to receive payment for the earned commission. This right persists regardless of how the new agreement handles commissions that the employee has not yet received.
The issue of unpaid commissions and unfair wages among California employees takes on a heightened importance, particularly in sectors where these earnings comprise a substantial portion of one’s overall remuneration.
Within the realm of banking, various positions, spanning from loan officers to investment bankers, heavily rely on commissions as an integral component of their comprehensive compensation structure. Banking professionals are engaged in a unique struggle of their own.
Imagine this – investing countless hours in cultivating client relationships, achieving set performance benchmarks, only to confront the disheartening reality that your diligently earned commissions are conspicuously absent from your paycheck!
According to California law, this scenario is illegal and unfair.
Numerous factors can contribute to situations where commissions remain unpaid or fall short of expectations:
If you believe that your banker salary or commission rights have been violated by a California bank, you have the right to take legal action and get compensation, such as:
So, what can bankers and bank employees do if they aren’t paid enough? They can sue.
Employees can tell the court about their unpaid money by filing a claim or lawsuit against the bank. Doing this could make them get the money they should have been paid before, extra money as a punishment, and payment for other costs connected to the argument about pay.
California employees, including those working in banks, have essential wage and commission rights that must be upheld by employers. Violations of these rights can lead to legal consequences for the banks.
If you believe your rights have been violated, it’s crucial to understand the relevant laws and take appropriate steps to file a claim, either through the Labor Commissioner’s Office or by consulting an employment attorney.
Remember, seeking legal advice is paramount to ensure your rights are protected and you receive the compensation you rightfully deserve.
Getting an employment lawyer to help with your lawsuit or claim for banker salary and commission violations can offer benefits that greatly increase your chances of success. Employment problems can be complicated and have many different aspects, so having a lawyer with special knowledge and expertise is really important.
Here are some reasons why having a lawyer can be really helpful:
We are dedicated to representing all employees who have been mistreated in their place of employment.
Bankers who believe they have been subject to wage violations, such as unpaid or underpaid wages, are eligible to initiate a wage lawsuit against banks. This could encompass a range of banker jobs, including but not limited to tellers, loan officers, customer relationship executives, personal bankers, and other roles within the bank.
At Labor Law Advocates, our award-winning lawyers work on a contingency fee basis, which means you won’t need to pay a single cent unless we win your case.
We also offer a free, no-obligation consultation.
Claims related to violations of minimum wage, overtime, unauthorized deductions from pay, or unpaid commissions should be submitted within a period of three years. Similarly, claims rooted in verbal agreements for compensation exceeding the minimum wage should be filed within a two-year timeframe.
If you did not receive the banker salary, bonus, or commission you are entitled to, you may be eligible to file a claim and recover compensatory damages.
Labor Law Advocates has employment lawyers who can help you recover financial compensation for any losses related to this wage and commission violation in California.
Do not hesitate! Let us fight for your rights. Call us today for a free, no-obligation consultation. We are available 24/7!
We speak English and Spanish.