Exempt employees & the CA outside sales employee exemption
In addition to the federal outside sales exemption, California has its own outside sales employee exemption.
In California, an outside salesperson is an employee who regularly spends over half their work time engaged in sales away from the employer's place of business.
This means that if an employee spends a significant amount of time doing duties other than sales away from the business, then that employee's job is subject to significant scrutiny to determine if the employee is properly classified as exempt under outside salesperson exemption
Commonly misclassified employees under CA's outside sales exemption
The outside sales exemption is one of the most misunderstood and misapplied exemptions by both employers and employees. Unfortunately, workers who are misclassified as outside sales employees may not be getting the overtime pay and other benefits they would be owed if correctly classified.
Commonly misclassified workers under the outside sales exemption include:
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Pharmaceutical sales representatives
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Insurance salespersons
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Commissioned delivery drivers
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Manufacturer's representatives that do marketing and merchandising at retail stores
Are you misclassified as an outside sales employee?
Think you are misclassifed as exempt? Free and confidential consultations are available with our employment attorneys by calling (866) 981-4800 or by filling out the form to the right.
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