Overview: The Fair Labor Standards Act (FLSA) has two main exemptions that are available for sales personnel:
The former is an exemption from both the minimum wage and overtime requirements of the FLSA; the latter is an exemption only from the overtime requirements.
Trends: The most significant development in this area in many years came in 2012 when the US Supreme Court ruled that outside salespersons do not necessarily need to transfer a title or directly consummate a transaction to be exempt from the minimum wage and overtime requirements of the FLSA. This made clear that pharmaceutical sales representatives and other similar employees who make "arrangements that are tantamount, in a particular industry, to a paradigmatic sale of a commodity" can qualify for the exemption.
Author: Michael Cardman, Legal Editor
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