[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2070 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2070

    To amend the Fair Labor Standards Act of 1938 to exempt certain 
specialized employees from the minimum wage recordkeeping and overtime 
                       compensation requirements.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 6, 2001

Mr. Tiberi (for himself and Mr. Andrews) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
    To amend the Fair Labor Standards Act of 1938 to exempt certain 
specialized employees from the minimum wage recordkeeping and overtime 
                       compensation requirements.

    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--
            (1) in paragraph (17), by striking the period and inserting 
        ``; or''; and
            (2) 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 sales are predominantly made 
                to persons--
                            ``(i) to whom any employee occupying the 
                        sales position has made previous sales; or
                            ``(ii) without the employee having 
                        initiated the sales contact;
                    ``(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) additional compensation that is 
                        based upon each sale attributable to the 
                        employee;
                    ``(F) the employee's additional compensation based 
                upon sales attributable to the employee is not less 
                than 40 percent of the amount described in subparagraph 
                (E)(i);
                    ``(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 base compensation described in 
                subparagraph (E)(i) 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. RULE OF CONSTRUCTION.

    The amendments made by section 2 may not be construed to apply to 
individuals who are employed as route sales drivers.
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