Are outside sales people exempt from overtime pay?

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Are outside sales people exempt from overtime pay?

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This exemption applies to employees who engage in making sales away from the employer’s place of business. It does not apply to telemarketers or any other salespeople who make sales from their employer’s place of business. The outside sales exemption is limited to employees who customarily and regularly work away from the employer’s business making sales or obtaining orders or contracts from clients, and who do not spend more than 20 percent of their work time performing non-exempt work. In other words, 80 or more of the hours worked in a workweek must consist of outside sales work, otherwise the sales person is entitled to overtime under the FLSA.

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