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100% Field Sales Rep Texas

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  • DAW
    replied
    I am in complete agreement that the employer can order the employee to report to the office any time they are not with customers.

    However, there is no appointment exception in the Outside Sales exception. The clear wording and intent of that exception is that the employee spend a (clear) majority of their time in the field actually trying to sell things. The lack of appointments per se does not mean anything. If the employee fails to spend the majority of their time in the field trying to sell stuff, the exception fails.

    The original intent of this exception was for door-to-door sales, or salesman who work a territory and spend all their time in their car. Having the employee spend some time in the office does not certainly violate the exception, but having the employee spend "too much" time in the office however does violate the exception. And as always,"too much" means whatever DOL wants it to mean.

    This is a very easy exception to violate. Historically DOL (federal and state) have called "balls and strikes" very close. I have worked for companies with employees under the Outside Sales exception and under advise of our in house Legal Groups, we did not allow these employees in the office more then one day each week. Our Legal Groups felt that 2 days a week was cutting it too close, because things like sales conferences and training and whatever also violated the requirements and it was felt that the government will call close decisions in whatever generates penalties for the government. By restricting it one day a week, it makes it very difficult to claim that a violation has occurred.

    The problem I have with what is described is that any employee at that place (under the exception) should routinely file claims for MW/OT when they leave. They will not certainly win, but the legal burden of proof is on the employer to account for all of the employee's time - not just how much time, but where they were and what they were doing. Smart employers do not play games with this exception.

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  • cbg
    replied
    I read the question slightly differently. I read it as, If you have an appointment, you go on the appointment. If you do not have an appointment, you come to the office. Office hours begin at 9:00. Be there or be at your appointment, but don't come wandering in at 9:30 or 10:00 if you didn't have an earlier appointment.

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  • DAW
    replied
    Agreed with a proviso. The employer can certainly order the employee to do ANYTHING not prohibited by law. That would include telling the employee when to report to work.

    HOWEVER, the 100% commissioned sales thing is a function of the employee actually complying with the Outside Sales rules. I am including a pointer to the actual rules for that exception and the rules are what the worksheet says. I am going to over simplify those rules for purposes of this discussion. Meaning go with what the worksheet say, and not what I am going to say now.
    http://www.dol.gov/whd/regs/complian...tsidesales.htm

    The main rules (over simpled) state that the employee spend the majority of their time at customers actually trying to sell something. While it is perfectly legal for the employer to tell the employee to spend time in the office and even do actual work in the office, think of a balance beam. The more time spent in the office the less time spent in the field. At some point if too much time is spent in the office, we violate the Exempt rules, meaning minimum wage and overtime laws become effective. So it is perfectly legal to tell the employee to work in the office, but there may be consequences to doing so.

    Not your question, but is the employee selling alarm systems or installing alarm systems? The first is Outside Sales, the second is not. Just checking.

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  • Betty3
    replied
    Or at anytime the employer wants him at the office as I noted above.

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  • cbg
    replied
    Can the company mandate that he be at the office at 9 am anytime he does not have a scheduled appointment?

    Yes.

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  • Betty3
    replied
    He needs to be at work anytime his employer requires/needs him to be.

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  • EGC
    started a topic 100% Field Sales Rep Texas

    100% Field Sales Rep Texas

    My husband is a 100% commissioned employee who sells alarm/security systems and services. He goes on company scheduled appointments and has one day a week to work on self generated leads. From what I gather, he falls into the "outside sales representative exemption". He is required to be available from 8 am to 9pm Monday thru Saturday. Can the company mandate that he be at the office at 9 am anytime he does not have a scheduled appointment?
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