What is a Salesperson?
The employee must be actively engaged in the sale of a product or service to be classified as a salesperson. For example, car mechanics or equipment installers who do not actively participate in a sale, but receive a commission generated by a service writer or other salesperson, cannot be classified as inside salespersons. Similarly, route drivers who deliver products and only marginally conduct sales cannot be classified as exempt outside salespersons. What is an “outside salesperson”? An outside salesperson is an employee who spends more than 50 percent of the time away from the home or corporate office selling a product or service. If the employee qualifies under this threshold test, then the employer is not obligated to pay minimum wage or overtime compensation to the employee. The form of compensation can be set up in any manner desired by the employer, but the 50 percent rule is a strict, hard-line test that must be met. For example, technical support persons in the field who mar
