Outside Sales Exemption - Clarification

bgreene · September 2004

We are adding a new outside sales position and I wanted clarification on my understanding of the salary requirements.

The new position will only pay $18,000 a year - but does meet the requirements under the exemption for outside sales. What I am not clear on is it true that they don't have to meet a salary requirement of $455 a week?

Shadowfax · September 2004

Review 541.5. My understanding is that there is no min sal required if you meet the prerequisites of 541.5.

E Wart · September 2004

I agree with Shadowfax. My understanding is that outside sales (if this is what they truly are) are a whole nother ball game.
I think the theory of this is that many outside sales make way over the $455 a week, but are paid it in comissions and sometimes paid in different ways at different times. (Not until order is paid for, etc.) Therefore, we don't have to "reconstruct" their pay program to adhere to FLSA. (Thank you Congress!!)
E Wart

bgreene · September 2004

Thank you for clarifying this for me. Most of our sales personnel are paid much more than the new position we are adding so it hasn't been an issue before. Glad to hear it isn't going to be an issue because of the salary. Especially since they are in sales and out of state they could tell us they worked numerous hours and we would not be able to dispute otherwise.

Outside Sales Exemption - Clarification

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