Outside Sales Employees Exemption from Overtime and Minimum Wage

posted by Neil Klingshirn  |  Jul 9, 2009 2:55 PM [EST]  |  applies to Ohio

Section 213(a)(1) of the Fair Labor Standards Act ("FLSA") exempts outside sales employees from its minimum wage and overtime requirements. The employer has the burden of proving the outside sales exemption. The employer must satisfy two tests.

1. That the employee's primary duty is making sales and
   
2. That the employee does so away from the employer's place of business.
   

US DOL Wage and Hour regulations cover the outside sales exemption at 29 CFR Part 541, Subpart F.

For the primary duty test, work performed incidental to and in conjunction with the employee's own outside sales or solicitations, including deliveries and collections, are exempt outside sales work.

Although the outside sales exemption is in the same FLSA Section (213(a)(1)) as the white collar exemptions (executive, salaried, professional and computer), the salary requirements do not apply to outside sales employees.

External Links

• 29 CFR Part 541, Subpart F
• 29 USC 213(a)(1) (exemptions from overtime and minimum wage).
  

posted by Neil Klingshirn  |  Jul 9, 2009 2:55 PM [EST]  |  applies to Ohio