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  2. FLSA Commissioned-Employee 7(i) Exemption - Fisher Phillips

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    Does a business qualify for a 7(i) Exemption?In doing so, business establishments that were once excluded may now be considered as offering a “retail” product or service and therefore qualify for the exemption. Similarly, employers will no longer be able to point to the DOL’s list of “qualified” retail businesses to satisfy 7 (i)’s requirements.
    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.
    What is Section 7(I) of the Fair Labor Standards Act?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. The final rule withdraws from 29 CFR Part 779:
    Can a retail employer use Section 7(I) overtime exemption for commissioned employees?If a retail or service employer elects to use the Section 7 (i) overtime exemption for commissioned employees, three conditions must be met: more than half the employee's total earnings in a representative period must consist of commissions.
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