Financial Advisers Paid Commissions Can Get California Overtime

Nov. 10, 2020, 12:55 AM

Financial advisers in California who are paid solely based on commission aren’t exempt from state overtime laws, a state appeals court said Monday, because their pay doesn’t constitute a salary.

A class of more than 100 Wedbush Securities Inc. financial advisers sued the securities firm for various wage and hour claims for allegedly misclassifying them as exempt. The advisers were paid once a month based on a commission tier system, the class said. If the commission isn’t at least double California minimum wage, Wedbush pays the adviser the commission due plus an advance on future commissions, which must be repaid ...

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