San Francisco Sales Person Overtime Exemption
Outside Salesperson Exemption
In California, there are two rules guiding commissioned employees: outside salespersons (Lab. Code §1171) and inside salespersons (8 Cal.C.Regs. §§ 11040, 11070). All outside salespersons should know that they are bound to exemptions supported by The Fair Labor Standards Act. Employees who fit the following guidelines can be exempted from/ not paid overtime.
1. has a chief responsibility to create sales, acquire orders or conventions for services or amenities utilization, AND
2. spends most of his or her work hours operating off premises.
To make the picture clear, I will explain what it means by outside salesperson and overtime. Outside salespersons most be 18 years or older and work mostly off grounds or in the field making sales and managing accounts. Accordingly, the time difference between the numbers of hours covered at the field while making sales and the hours specified by the employer during the initial agreement is described as overtime.
For you to be eligible for the exemptions covered in the California law, you are required to spend above 50% of your time working on genuine sales duty away from the employer’s business premises. For the sake of California law, it is important to note that employer’s business place can be anywhere (home or any identified office).
Being the owner of the business or the salesperson, it is essential to know the law that guide you’re surrounding at the work place. Watch out if you are an employer or a salesperson. The legal penalty for breaching ones right at the work place is unavoidable. Handle each other with lots of care.
Inside Salesperson Exemption
It is sad to discover that there is a federal law necessity that excuses some employees from agreements calling for overtime wage. The only exemptions apply to workers who match some specified conditions. These conditions may vary based on state and federal law. For instance, a salesperson may be assigned to overtime payment in line with federal law, even if this is opposed to state law.
California earnings and overtime laws are routinely challenging as compared to federal law. This threatens business owners from falsely benefiting from exceptions. On the other hand, the inside salesperson is beyond this common law. Presently, the California court adopted the inside salesperson to a team of workers, with interesting persuasions.
Any employee who wins a payment of approximately one-half over the lowest wage, and whose earnings exceed 50% as generated from sales commissions, maybe exempted under federal act and California law. Though, there are accompanying risks. These kinds of exemptions are specifically covered in:
Industry Wage Order 7-2001, which contains retailers’ market regulations and
Occupation Wage Order 4-2001, which applies to workers with specified profession as long as they are not enclosed by other corporations.
If you believe you are owed overtime or other back wages please contact United Employees Law Group at: 1-415-230-2755
Photo Credit: Shutterstock/Roman Samborskyi