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Insurance products and services provided through our sister company Georgia Health Administrators, Inc. DBA Omega HR Solutions, Inc.
Exemption for Outside Sales
Outside Sales Reps Must Actually Sell
The 2nd Circuit Court of Appeals, which covers New York, Vermont, and Connecticutt, issued a ruling dealing with the Outside Sales Exemption under the Fair Labor Standards Act. They ruled that to be covered by the exemption the outside representative must actually sell something. This case covered a pharmaceuticals company and their representatives that call on doctors to make the doctor familiar with medications. The court ruled that these representatives only demonstrate and do NOT sell. Thus, they are not eligible for the Outside Sales Exemption. This means they must be paid overtime if they work more that 40 hours in the week. This ruling will force many companies to reevaluate the individual jobs that currently are classified as exempt in the Outside Sales catagory.
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