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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2144 Introduced in Senate (IS)]

105th CONGRESS
  2d Session
                                S. 2144

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

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 9, 1998

 Mr. Coverdell introduced the following bill; which was read twice and 
         referred to the Committee on Labor and Human Resources

_______________________________________________________________________

                                 A BILL

 
   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) position does not involve initiating 
                        sales contacts;
                    ``(C) the employee's position requires a detailed 
                understanding of the needs of those to whom the 
                employee is selling;
                    ``(D) 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;
                    ``(E) 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;
                    ``(F) 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 (E) which rate is not less 
                than the rate on which the compensation required by 
                subparagraph (E) is determined; and
                    ``(G) 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.''.
                                 <all>
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