Outside Sales Exemption

Employees should only be denied overtime if they are a salaried employee making more than $455 per week and they meet the following two tests of the outside sales exemption:

  • The employee must make sales or obtain orders or contracts for services or for the use of facilities for which a consideration will be paid by the customer or client
  • The employee must be regularly engaged away from the place of business

In overtime law, “obtaining orders for the use of facilities” includes selling radio or television time, solicitation of advertising for periodicals and the solicitation of freight for railroads and other transportation agencies. In addition, “away from the place of business” generally refers to workers who make sales at the customer’s office or home.