The New Jersey Department of Labor and Workforce Development (NJDLWD) recently restored the “inside sales” exemption to its wage and hour regulations. As we previously reported, the NJDLWD amended its wage and hour regulations in 2011 to follow the federal regulations. In doing so, the NJDLWD inadvertently eliminated the exemption for commissioned sales employees.
The NJDLWD recently corrected the error and restored the “inside sales” exemption. The relevant regulation now defines “Administrative” employees to include “an employee whose primary duty consists of sales activity and who receives at least 50 percent of his or her total compensation from commissions and a total compensation of not less than $400.00 per week.” The restored “inside sales” exemption differs from the federal exemption found in Section 7(i) of the Fair Labor Standards Act. Therefore, employers should determine whether their commissioned sales employees qualify for both the state and federal exemptions.
If you have any specific questions regarding the amended regulation, please contact your employment counsel at Smith, Gambrell & Russell, LLP.