Facebook, Twitter, LinkedIn, YouTube, RSS, EmailFacebookTwitterLinkedInYoutubeRSS News FeedEmail

News

FLSA - Outside Sales Exemption

by The Human Equation, Inc. on 10/13/2008
Facebook, Twitter, LinkedIn, Google+, YouTube, RSS Facebook Twitter Linkedin Google+ YouTube RSS

Our outside sales employees travel to prospects' places of business for the purpose of making sales. They are paid strictly on a commission basis and do not receive a fixed salary. Are these employees exempt from the Fair Labor Standards Act's overtime pay requirements?

Yes. Subject to specific exemptions, the Fair Labor Standards Act (FLSA) is the federal law requiring that employees be paid not less than time and one-half the employee's regular rate of pay for time worked over 40 hours in a workweek. One such exemption is the outside sales exemption, which applies when: the employee's primary duty is making sales, or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and the employee is customarily and regularly engaged away from the employer's place of business. If an employee satisfies these requirements, then he or she will be exempt from the FLSA's overtime pay provisions.

A unique characteristic of the outside sales exemption is that it does not have a salary requirement, whereas some exemptions, such as the executive or administrative exemptions, require that the employee be paid on a salary basis of not less than $455 per week. Since the outside sales exemption does not contain such a salary requirement, the fact that the employees in this situation are not paid a fixed salary does not call into question their status as exempt from the FLSA's overtime pay provisions.

Tags: , , ,
Categories:

Add comment

biuquote
  • Comment
  • Preview
Loading



  privacy policy
The Human Equation's newsletters and publications are intended as an information source for the clients and friends of the firm. Their content should not be construed as legal advice, and readers should not act upon the information in these publications without professional guidance. Please note that newsletters and publications that are archived by The Human Equation are not updated after initial publication and may not contain the most current information available.

Refer to friendRefer to friend

Permission to ReprintPermission to Reprint

Contact a Subject Matter ExpertContact an Expert

Subscribe to Our NewsletterSubscribe to Our Newsletter

Tags

© 2019 - The Human Equation, Inc. All rights reserved. - Privacy Policy - Disclaimer -
Follow us on Facebook.comFollow us on Twitter.comFollow us on Linkedin.comFollow us on YouTube.comSubscribe to our RSS FeedSend us an email
Subscribe to our newsletter
900 South Pine Island Road, Suite 300 - Plantation, FL 33324 - Phone: 800-521-9667 / 954-382-0030 - Fax: 954-382-2810