InstituteExemptions from Overtime/Minimum WageCompensationAssociate Benefits & CompensationCompensationUSAHuman ResourcesEnglishAnalysisFocus AreaIn Depth (Level 3)
Outside sales exemption
['Compensation']

- Outside sales employees qualify for exemption under FLSA if their job duties and salary meet the criteria.
To qualify for the outside sales employee exemption, all of the following tests must be met. The employee must:
- Have a primary of making sales (as defined in the FLSA), 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
- Be customarily and regularly engaged away from the employer’s place or places of business.
This exemption is the focus of numerous suits. Note that this exemption applies only to sales personnel who are engaged in making sales away from the employee’s place of business.