[Congressional Record Volume 143, Number 157 (Sunday, November 9, 1997)]
[Extensions of Remarks]
[Page E2273]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            H.R. 2888, THE SALES INCENTIVE COMPENSATION ACT

                                 ______
                                 

                         HON. ROBERT E. ANDREWS

                             of new jersey

                    in the house of representatives

                       Saturday, November 8, 1997

  Mr. ANDREWS. Mr. Speaker, many American workers today earn their 
living by selling goods and services to customers across the continent 
or across the globe. Such salespeople increasingly find that their 
paycheck is determined by how well they produce and how much they sell, 
because they are paid in part according to a bonus or commission 
system. Salespeople who can substantially increase their salary by 
earning more commissions ought to be allowed to work longer hours and 
perform their jobs more effectively, in order to make more money. 
Unfortunately, current law keeps them from earing as much as they 
could.
  I am proud to join with my colleague, Congressman Harris Fawell, to 
introduce H.R. 2888, the Sales Incentive Compensation Act. This common-
sense legislation will give fear greater flexibility to salespeople and 
their employees, by allowing salespeople to choose to work harder in 
order to earn higher commissions. And it ensures security and fairness 
for all workers, by precluding abuses that would force employees to 
work longer hours without substantial reward.
  Our bill provides flexibility to meet the demands of the workplace 
and the market. Today's customers demand goods and services at 
different times and in different time zones. Today's information 
economy allows a more flexible sales force to make sales around the 
clock. The Sales Incentive Compensation Act gives employees the 
flexibility to adjust their schedule in order to earn more money in 
commission, rather than limiting their earning potential. For instance, 
a working mother may find it easier to make sales calls from home, 
while the employer benefits from a more productive sales force.
  In addition, our bill guarantees security and protection for workers. 
The Sales Incentive Compensation Act ensures that lower earning workers 
cannot be exploited or denied the protections of time-and-a-half 
overtime for work beyond a 40-hour week. The bill establishes a 
stringent test which guarantees that salespeople cannot be exempted 
from the wage and hour laws unless they receive a substantial minimum 
salary and are guaranteed the opportunity to earn significant 
commissions or incentive-based compensation. Employees cannot be 
exempted from the 40-hour work week unless they meet this test.
  The Sales Incentive Compensation Act is based on the principles of 
fairness and opportunity. Under our bill, salespeople must be given the 
opportunity to continue earning commissions if they choose to work 
longer hours and are successful in making more sales. The rate of bonus 
pay for extra sales must be as good, or better, than the rate for the 
salesperson's minimum sales. Employees would have an incentive to work 
harder, and employers would be required to pay them a fair commission 
for each additional sales that they make. Thus, both businesses and 
salespeople will share in the increased profit and productivity that 
will be created when H.R. 2888 becomes law. I urge my colleagues to 
support this sensible and crucial legislation.

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