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Posted: 2002-11-05 13:05
I have been researching the outside sales exemption and I am utterly confused. I read that work done "in conjunction with and incidental to" making sales is considered exempt.
What exactly does that term mean? Is collecting payment for services considered "in conjuntion with and incidental to"? How about an outside sales rep who spends half his time colleting payment and the other half making sales? Would he be exempt?
Are there any court cases that address this issue?
I would very much appreciate your comments.
pattystl
Joined: Jan 29, 2002 Posts: 278
Posted: 2002-11-05 14:16
I would think that half the time collecting would be considered more that incidental.
"Incidental" activites would be such things as setting appointments, completing orders and other paperwork, etc. If collection half their time, then I would classify them as non-exempt. They would be collectors who occasionally sold, rather than the other way around.
ForumHosts Legal Forum Host
Joined: Jul 09, 2002 Posts: 825
Posted: 2002-11-06 06:44
Outside salespeople are exempt. The question you raise is, what are the requirements to be an outside salesperson?
The regs explain that an outside salesperson is a person employed for the purpose of (1) making sales, or (2) obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and is customarily and regularly engaged away from the employer's place or places of business. (If the salesperson does not meet this test, s/he may be an "inside" salesperson").
If the outside slesperson spends more than 20 percent of the normal workweek of the employer's non-exempt employees doing non-exempt work, then the exemption is lost. However, work performed incidental to and in conjunction with the employee's own outside sales or solicitations, including incidental deliveries and collections, is not regarded as nonexempt work. Essentially, this means that work that would otherwise be considered non-exempt will not be if it is part of the outside salesperson's sales or solicitations. Further, training or supervising other salespeople is considered nonexempt work.
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Posted: 2002-11-05 13:05 
