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  2. Section 7 (i) of the Fair Labor Standards Act (FLSA) provides an exemption from the FLSA’s overtime compensation requirement for certain commissioned employees employed by a retail or service establishment.
    www.dol.gov/agencies/whd/overtime/2020-7i
    www.dol.gov/agencies/whd/overtime/2020-7i
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    What is a 7(i) Exemption?The second requirement for the 7 (i) exemption is that the employee’s “regular rate” must be at least one and a half times the minimum wage for every hour worked in a workweek in which any overtime hours are worked.
    Do you qualify for a section 7(i) Exemption?The last requirement to qualify for the Section 7 (i) exemption is that more than 50% of an employee’s compensation over a “representative period” must be paid as commissions.
    When does section 7(I) of the FLSA apply?Section 7 (i) of the FLSA creates an exemption that applies when all three of the following conditions are met: The employee must be employed by a retail or service establishment. The employee’s regular rate of pay must exceed one and one half times the minimum wage for every hour worked in a workweek in which any overtime hours are worked.
    What is Section 7(I)?Section 7 (i) of the Act was enacted to relieve employers in retail and service industries from the obligation of paying overtime compensation to certain employees paid primarily on the basis of commissions.
     
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