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elaws - employment laws assistance for workers and small businesses

- FLSA Overtime Security Advisor

Outside Sales Employees

The FLSA contains an exemption from the payment of both minimum wage and overtime pay to any employee employed as an Outside Sales Employee, as that term is defined by the Regulations, Part 541.

Outside sales employees sell their employer's products, services, or facilities to customers away from their employer's place(s) of business, in general, either at the customer's place of business or by selling door-to-door at the customer's home. Sales made from the employer's location (inside sales) do not qualify as outside sales. Similarly, work done by mail, telephone or the Internet do not qualify as outside sales unless such activities are in connection with sales made by personal contact. Some employees performing inside sales work in certain retail establishments may be exempt from the overtime pay protections under FLSA section 7(i). Learn about FLSA section 7(i). Drivers who deliver the products they sell may or may not meet the duties tests for exemption as outside sales employees. Learn about drivers who sell.