According to the U.S. Bureau of Labor Statistics, more than 13.3 million people held jobs in sales and related occupations in May 2023. This group includes, for purposes of the Fair Labor Standards Act’s minimum wage and overtime requirements, both exempt and non-exempt employees. Employers should proceed carefully in classifying their sales workers, as misclassification can result in steep financial consequences. If you have questions about categorizing your sales workers (or about your own sales job,) it is well worth your while to consult an experienced Atlanta wage and hour lawyer to ensure you are getting knowledgeable and reliable advice.
That array of 13.3 million sales workers can be divided into two broad groups: “inside” sales and “outside” sales. “Inside sales” generally refers to workers who sell remotely, such as via the telephone or the Internet, whereas “outside sales” typically refers to workers who meet customers face-to-face. For purposes of FLSA classification, inside sales workers generally are non-exempt while outside sales employees are generally exempt.
An inside sales worker can be exempt if the realities of their job place them within one of the law’s recognized exemptions, but employers should tread cautiously before trying to “shoehorn” their inside sales employees into an exemption. Misclassification errors are often very costly, as a recent unpaid overtime case from New England illustrates.