Are outside salespersons exempt?

The FLSA provides a minimum wage and overtime pay exemption for any employee employed in the capacity of outside salesperson.

Outside sales exemption tests. Under final regulations, effective August 23, 2004, the outside sales employee exemption is available if the following tests must be met:

• The employee’s primary duty must be 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

• The employee must be customarily and regularly engaged away from the employer’s place or places of business.

There are no salary requirements applicable to the outside sales exemption. Also, an employee who does not satisfy the requirements of the outside sales exemption may still qualify as an exempt employee under one of the other exemptions.