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Last week on our weekly newsletter, we talked about the Computer-Related Occupations to the salary compensation for overtime rules. As a reminder, I listed the exemptions to paying someone overtime below.
Executive Exemption
Administrative Exemption
Professional Exemption
Computer Exemption
Outside Sales Exemption
Highly Compensated Exemption
This week we're going to talk about the Outside Sales exemption for overtime.
To qualify for outside sales exception. The employees' primary duty must be making sales, obtaining orders or contracts and services.
The most important part is that the employee must be customarily and regularly engaged away from the primary place of business.
I believe a lot of small businesses have their salespeople exempt from the overtime requirements even though they do not meet the standards for this.
People who do sales from your place of business or a call center are not exempt from overtime.
So that's a very important distinction. Your salespeople in order to be exempt from overtime must be primarily working outside your business.
A lot of people have their drivers make sales for them and then exempt them from overtime. So for a driver to be exempt from overtime. Doing sales must be the primary duty and not the driving part. So some very important considerations for you to make sure you are doing this correctly.
At cavnessHR, we deliver HR to companies with 49 or fewer people by automating the HR process while maintaining the human touch. We want to bring big business HR to small business.
Any questions about this or anything HR-related, reach out to me at jasoncavness@cavnessHRcom. or reach out to us on social media at cavnesHR across most social media platforms.
Thanks for your time today and remember to be great every day. |
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