How to Determine if an Employee Qualifies for the Outside Sales Exemption
Page Contents
- Step 1: Determine if the Employee Makes Sales or Obtains Orders for Contracts for Services or the Use of Facilities
- Step 2: Confirm That Making Sales and/or Obtaining Orders for Contracts Is the Employee's Primary Duty
- Step 3: Be Sure the Employee Is Customarily and Regularly Engaged Away from the Employer's Place(s) of Business When Making Sales
- Step 4: Consult an Attorney or DOL if the Employee Does Not Clearly Satisfy All the Requirements
- Step 5: Document the Classification
- Additional Resources
Authors: Michael Cardman, XpertHR Legal Editor, and Allen S. Kinzer, Vorys, Sater, Seymour and Pease LLP
Sales employees who work away from an employer's office or place of business may be eligible for the outside sales exemption from the overtime and minimum wage requirements of the Fair Labor Standards Act (FLSA). Follow these steps to determine whether an employee qualifies for the outside sales exemption.
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