Bill Fisher

Effective July 1, 2024, the salary threshold for overtime exempt employees will increase to $43,888 annually, rising to $58,656 on Jan. 1, 2025. While there is current litigation in the Federal Court in Texas that may halt this rule, employers should anticipate addressing this with overtime exempt employees on July 1, 2024. When addressing this new rule, two options are available: (1) allow overtime for hours beyond 40 hours worked or (2) raise the overtime exempt employee's rate to the new threshold. For further details, visit: https://lnkd.in/gAQRtHF2

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The Texas challenge to the EEOC harassment guidance has reached a temporary conclusion. 🛑 For the latest updates and insights on what this means for employers and employees, check out Constangy partner Robin E. Shea's blog post in the link below. #EmploymentLaw #EEOC #WorkplaceHarassment

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Do you know if commissions are paid after an employee is terminated? The Texas Supreme Court recently upheld a judgment awarding an executive $1 million in commissions that the employer had refused to pay due to the employee’s termination. ~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/ In Perthuis v. Baylor Miraca Genetics Laboratories, the Texas Supreme Court held that terminated employees should be paid their commissions if their work was the “procuring cause” of the contract with the customer. The employee is owed the commission when “a purchaser [was] produced through [the employee’s] efforts, ready, able and willing to buy the [product] upon the contracted terms,” the Court explained. This is a landmark case, as the procuring cause doctrine historically has primarily applied to real estate transactions. The doctrine provides that if the employee “procured” the sale, then that employee deserves the sales commission even after a termination. You might ask what an employee must do to “procure” a sale. The situation must satisfy three factors: 1️⃣ 1️⃣ 1️⃣ A written agreement between the employee and employee created during the employment relationship that provides for commission payments to the employee upon a sale. 2️⃣ 2️⃣ 2️⃣ The parties must not have taken any action that would displace the procuring cause doctrine, such as breach of contract or a requirement in the contract that to receive commissions payments the salesperson must be employed at the time. 3️⃣ 3️⃣ 3️⃣ The employee must be the “procuring cause” of the sale, or the person who caused the sale to occur. In the opinion, the justices emphasized that employers certainly may condition the payment of commissions on continued employment. But that condition must be clearly stated in the contract. This case is important as it clarifies the frequently contentious issue of unpaid commissions. Note, however, that this clarification does not deviate from the existing case law on unpaid commissions. Texas state law holds that an employee who does not resign or is not terminated for cause is entitled to payment of bonuses or commissions that were earned but not paid. If a company terminates an employee without cause, that employee is entitled to, at a minimum, a pro rata amount of earned commissions for the portion of the year worked. If you are unsure about this and whether the procuring cause doctrine applies to you, consult an expert lawyer with experience in the field of commission contracts. ~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/~/ With this clarification on unpaid commissions, it is especially important to review your employment contract. Review your contract to determine whether it contains written commission conditions that can make or break your earnings. As the BMGL case shows, what is unstated can be as important as what is stated in contracts. Commissions can be a complicated matter. #EmploymentLaw #Commissions

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#NonCompetes A major business cultural shift a long time coming. Lots of questions coming into our office from contract counter parties and the C-Suite on the FTC bam of non-competes. While the trend nationally has been for courts to disfavor and limit scope and duration of non-competes— this is a game changer that encourages free movement of workers. Frankly in the digital age with work remote and anywhere culture - it’s no surprise. Historically the band have had the biggest impact on the rank and file. How this will effect existing contracts- that may be another question altogether. With the new rules on overtime the US has moved closer to other developed economies in balancing the inherent power of those who control the means of production and the capital- with the need of the average worker to be fairly compensated, have the least restricted opportunity to maximize value for their services in the market place, and have work life balance. I look forward to vetting all these issues with #CiardiCiardiAstin clients.

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Louisiana is the 25th jurisdiction to enact the Uniform Collaborative Law Act! Thank you to Governor John Bel Edwards for signing the bill into law, and to our sponsor Senator Jean-Paul Coussan for your advocacy. The collaborative law process provides lawyers and clients with another tool in their ADR toolbox to resolve their disputes. Like mediation, it promotes problem-solving and permits solutions not possible in litigation or arbitration. Collaborative law is a voluntary process in which clients and their lawyers agree that the lawyers will represent the clients solely for purposes of settlement, and that the clients will hire new counsel if the case does not settle. The parties and their lawyers work together to find an equitable resolution of the dispute at hand, retaining experts as necessary. No one is required to participate, and parties are free to terminate the process at any time. To this end, the Uniform Collaborative Law Act includes explicit informed consent requirements for parties to enter into collaborative law with an understanding of the costs and benefits of participation. The process is intended to promote full and open disclosure; information that is disclosed in a collaborative process, which is not otherwise discoverable, is privileged against use in any subsequent litigation. For more information: https://lnkd.in/gcr9uyNU

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Keep on top of workplace harassment guidelines with Constangy partner Robin E. Shea. She discusses the #EEOC's final Enforcement Guidance, offering a thorough breakdown for employers on ensuring a respectful and compliant workplace. Check out the key takeaways through the link below! #workplaceharassment #employmentlaw

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