Outside sales is one of several FLSA exemptions to the overtime rule. One employer recently learned a basic truth that the term “outside” does not mean inside.
The employer, It’s Greek to Me, is a sportswear company based in Kansas. A DOL investigation revealed that 133 employees were wrongly classified as exempt outside sales. The result was a fine exceeding $97,000. The employees earned fixed salaries despite the fact that they made their sales primarily at the company’s headquarters. The employer also failed to track their time.
To qualify for the outside sales exemption, an employee must meet all four of the following conditions:
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