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.
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