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Microsoft to Layoff 18,000: Shadow Layoff, CA Supreme Court: “Commissioned Employee” Favoring Employees

Microsoft’s Contractor Crackdown: ‘Shadow Layoff’

Microsoft employed about 100,000 people directly prior to its acquisition of Nokia’s smartphone business. That’s the employment number the company reports publicly — the “blue badges” who make up the core of its workforce.

But in addition to those employees, more than 71,000 worked with Microsoft as “orange badges” — contractors, vendors and other contingent staff who do a ton of work in the trenches. This is the “shadow workforce,” a number that Microsoft does not include in its public employment figures…

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Another article relating to Microsoft’s Layoffs


California Supreme Court Construes “Commissioned Employee” Exemption To Favor Employees

Once again, California’s highest court has reminded California employers that the law they face is more onerous than the federal law that applies generally. At issue in Peabody v. Time Warner Cable, Inc. was the breadth of California’s exemption for commissioned salespersons. Under certain Wage Orders, California employees generally are not eligible for overtime pay if they earn more than 150% of the minimum wage and receive more than one-half of their earnings from commissions.

When an issue arose in a Ninth Circuit case as to how those standards apply, the Ninth Circuit asked the California Supreme Court for an advisory ruling. The response was this: employers may not attribute the commission wages paid in one pay period to other pay periods in order to satisfy California’s compensation requirements. More generally, the Supreme Court’s advice was that an employer may not use the wages paid in one pay period to cure a shortfall existing in a prior pay period…

Continue reading Commissioned Employee

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