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In California, all employees are presumed to be entitled to overtime, meal periods, and other wage-and-hour regulations unless an employer can prove that its employees “plainly and unmistakably” fall within the terms of an exemption. A recent appellate case addressed for the first time whether a compensation plan based solely on commissions, with a recoverable draw against future commissions, qualifies as a “salary” for purposes of the administrative exemption. The appellate court, reviewing the pay system in question, reversed a trial court decision on November 9 and concluded that it did not. What do California employers need to know about the