Consumer Alert: Inside Sales Representatives May Not Be Getting the Overtime Pay They Deserve

DALLAS (July 13, 2011) –The law firm of Baron and Budd is investigating wage violation issues that could be keeping hard-working sales representatives from earning the compensation they are owed under law. Baron and Budd has recently found that there has been a spike in overtime violations by sales call centers, primarily affecting inside sales representatives and preventing them from getting all the pay they are due by law. The firm recently filed a lawsuit against SuperMedia, Inc. for violations, and believes that other, similar companies are likely committing the same violations.

"Not paying proper overtime wages has become such a major issue that the U.S. Department of Labor is overwhelmed with cases. They can’t handle all the claims, so they are referring out many of the cases for private firms like ours to prosecute," said Allen Vaught, head of Baron and Budd’s Fair Labor Standards Act (FLSA) litigation section. "The law clearly states how employees should be compensated but, sadly, some inside sales reps are being taken advantage of because they either do not know they are not being paid all of their earned wages or need to work and are afraid to ask questions."

Employers in the United States must comply with the Fair Labor Standards Act (FLSA), a federal law that governs wages and hours, as well as fair pay. The FLSA was put into place to protect workers and governs minimum wage and overtime pay for employees in the private sector as well as in federal, state, and local governments. Employees whose jobs are governed by the FLSA are either "exempt" or "non-exempt" and the classification is made by job description and level of supervision. Non-exempt employees are entitled to overtime pay.

According to the FLSA, non-exempt employees must be paid time and a half for all hours worked in excess of 40 hours per work week –including any bonuses or commissions the employee received. Many employees who are paid a flat salary or base salary plus commissions are still due overtime pay. Unfortunately, it is very common for employers to either not pay overtime or illegally base the time and a half rate on only the base pay and not include commissions. However, federal law is clear that commissions must be included in the overtime pay rate.

"While you may think that the unpaid overtime compensation does not add up to much, you might be surprised. Weekly violations add up quickly, and the FLSA requires employers to pay double on back wages plus attorneys’ fees," Vaught added.

If you or someone you know in inside sales suspects that they have been affected by overtime violations, call Baron & Budd at 1.866.495.1225 or email Attorney Vaught directly at avaught@baronbudd.com for a free consultation to learn more about your rights.

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Your inquiry will be confidential and the FLSA protects employees from being fired or discriminated against if they investigate a claim or file a lawsuit against their employer for FLSA violations.

About Baron & Budd, P.C.
The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin, Los Angeles and Miami, is a nationally recognized law firm with a 30-year history of "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, dangerous medications and medical devices, Chinese drywall, insurance claims, commercial litigation, securities fraud and asbestos-related illnesses such as mesothelioma.

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