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Outside Sales vs. Inside Sales - CA

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  • Outside Sales vs. Inside Sales - CA

    ER would like to implement a sales position that conducts prospecting, developing and identifying of leads in order to make preneed sales for funeral services. This position would receive commission upon finalizing a sale; however, the position is designed for the employee to work a minimum of 30 hours (paid at the minimum hourly rate within CA) within a designated office space and is also expected to go into the field and attend events in order to develop leads and make sales. The concern I have is that this position meets the criteria under the FLSA Exemption of Outside Sales under the component where they would be required to go out into the field to make sales; however, it also meets the criteria for inside sales when working within the assigned facility. Therefore, I am not sure how to classify this position; not sure if it would be dependent upon the time the employee spends within the facility versus out in the field to determine the classification. Also, if the employee spends more time in the facility, and is deemed non-exempt, if and when this employee goes out into the field, would they be entitled to hourly pay? Can someone please advise.

    Thank you!

  • #2
    The standard says "customarily and regularly" which is defined as "greater than occasional but less than constant; it includes work normally done every workweek, but does not include isolated or one-time tasks." I don't think random industry events qualifies as "customarily" or "regularly." If these events were scheduled, say every Tuesday and Thursday, that might do it, but it doesn't sound like that's the case. I would not risk making this position exempt. And yes, if it is non-exempt, the employee needs to be paid their regular hourly wage for the time spent at these events. Keep in mind that you also need to figure their commissions into their overtime rate.
    Last edited by ferretrick; 04-04-2018, 05:58 AM.