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  • Writer's picturePaul Peter Nicolai

Wholesaler Inside Sales Reps Entitled To Overtime

A wholesale plumbing and heating product supplier must pay its inside sales representatives overtime. The Court ruled that they did not fall within the Fair Labor Standard Act's exemption for administrative employees


WHY THIS IS IMPORTANT…The Court rejected the employer's argument that the workers performed work directly related to the management or general business operations of the employer or the employer's customers as required under the three-part test provided in DOL regulations for the administrative exemption to apply. She concluded the evidence clearly showed their primary duty was to make sales. Employers often go astray in classifying employees by emphasizing the administrative exemption elements on the extent of discretion and independent judgment exercised by employees.

 

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