HR 2888 RFS
H. R. 2888
IN THE SENATE OF THE UNITED STATES
June 16, 1998
June 16, 1998
Received; read twice and referred to the Committee on Labor and Human Resources
To amend the Fair Labor Standards Act of 1938 to exempt from the minimum wage recordkeeping and overtime compensation requirements certain specialized employees.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Sales Incentive Compensation Act’.
SEC. 2. EXEMPTION.
Section 13(a) of the Fair Labor Standards Act of 1938 (29 U.S.C. 213(a)) is amended by striking the period at the end of paragraph (17) and inserting a semicolon and by adding at the end the following:
‘(18) any employee employed in a sales position if--
‘(A) the employee has specialized or technical knowledge related to products or services being sold;
‘(B) the employee’s--
‘(i) sales are predominantly to persons or entities to whom the employee’s position has made previous sales; or
‘(ii) the position does not involve initiating sales contacts;
‘(C) the employee has a detailed understanding of the needs of those to whom the employee is selling;
‘(D) the employee exercises discretion in offering a variety of products and services;
‘(E) the employee receives--
‘(i) base compensation, determined without regard to the number of hours worked by the employee, of not less than an amount equal to one and one-half times the minimum wage in effect under section 6(a)(1) multiplied by 2,080; and
‘(ii) in addition to the employee’s base compensation, compensation based upon each sale attributable to the employee;
‘(F) the employee’s aggregate compensation based upon sales attributable to the employee is not less than 40 percent of one and one-half times the minimum wage multiplied by 2,080;
‘(G) the employee receives a rate of compensation based upon each sale attributable to the employee which is beyond sales required to reach the compensation required by subparagraph (F) which rate is not less than the rate on which the compensation required by subparagraph (F) is determined; and
‘(H) the rate of annual compensation or base compensation for any employee who did not work for an employer for an entire calendar year is prorated to reflect annual compensation which would have been earned if the employee had been compensated at the same rate for the entire calendar year.’.
SEC. 3. CONSTRUCTION.
The amendment made by section 2 may not be construed to apply to individuals who are employed as route sales drivers.
Passed the House of Representatives June 11, 1998.
ROBIN H. CARLE,