Employment

Fry’s Electronics Minimum Wage Litigation. Himmelstein Law Network represented current and former employees of Fry’s Electronics, Inc. In pay periods where the commissions earned by its salespersons totaled less than the applicable minimum wage, Fry’s “advanced” the difference as a “Commission Draw,” which it later repaid itself out of commissions earned by the salesperson in subsequent pay periods. As a result, salespersons retained less than the minimum wage for the pay period in which they received the “Commission Draw,” in violation of California wage laws. After the Court ruled in favor of the plaintiff, Fry’s discontinued the practice, and settled the case for $2.5 million, even though it was on the verge of going out of business.