Content Last Revised: 4/23/04 ---DISCLAIMER---

29CFR541.503 - Promotion work.

• Section Number: 541.503
• Section Name: Promotion work.

    (a) Promotion work is one type of activity often performed by 
persons who make sales, which may or may not be exempt outside sales 
work, depending upon the circumstances under which it is performed. 
Promotional work that is actually performed incidental to and in 
conjunction with an employee's own outside sales or solicitations is 
exempt work. On the other hand, promotional work that is incidental to 
sales made, or to be made, by someone else is not exempt outside sales 
work. An employee who does not satisfy the requirements of this subpart 
may still qualify as an exempt employee under other subparts of this 
rule.
    (b) A manufacturer's representative, for example, may perform 
various types of promotional activities such as putting up displays and 
posters, removing damaged or spoiled stock from the merchant's shelves 
or rearranging the merchandise. Such an employee can be considered an 
exempt outside sales employee if the employee's primary duty is making 
sales or contracts. Promotion activities directed toward consummation 
of the employee's own sales are exempt. Promotional activities designed 
to stimulate sales that will be made by someone else are not exempt 
outside sales work.
    (c) Another example is a company representative who visits chain 
stores, arranges the merchandise on shelves, replenishes stock by 
replacing old with new merchandise, sets up displays and consults with 
the store manager when inventory runs low, but does not obtain a 
commitment for additional purchases. The arrangement of merchandise on 
the shelves or the replenishing of stock is not exempt work unless it 
is incidental to and in conjunction with the employee's own outside 
sales. Because the employee in this instance does not consummate the 
sale nor direct efforts toward the consummation of a sale, the work is 
not exempt outside sales work.