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commissions, based on sales and renewals of policies he made. In
general, during the times relevant to this case, approximately 70
percent of a district manager’s income came from override
commissions and bonuses; the remainder came from sales
commissions. District managers were paid on commission as a
carryover from the days when Combined treated them as independent
contractors.
Petitioner recruited insurance agents using several
different methods, including advertisements, college visits,
field recruiting, and employment agencies. Normally between 15
and 25 people would interview for a single position. Petitioner
set his own hiring schedule. Combined’s district managers in
general, and petitioner in particular, made the choice of who to
hire. Combined established certain qualifications for its
insurance agents, but petitioner used more stringent
qualifications in selecting the insurance agents that worked
under him. Following an interview, a prospective insurance agent
would go on a field demonstration, a 1-day opportunity to
experience the job first-hand with another insurance agent.
After the field demonstration, if the district manager considered
the prospective insurance agent to be promising, the district
manager would normally make the decision to hire the agent, and
Combined and the agent would execute a contract with respect to
the agent’s services. Combined never rejected an applicant that
petitioner chose.
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Last modified: May 25, 2011