Employers should take the following steps to help be certain they have correctly classified members of their sales force as exempt or non-exempt.
FOR INSIDE SALESPERSONS:
- Examine whether the employee meets the exemption requirements on a weekly basis.
- Pay close attention to guaranteed draw programs and
whether they are in fact meeting the requirements for
the inside sales exemption.
FOR OUTSIDE SALESPERSONS:
- Determine whether the employee spends at least 50 percent of his or her work time engaged in pure sales.
- Allocate incidental work appropriately. For example, an appointment
to make a sales pitch to increase business and to also
deliver products should be allocated between the two types
of work.
- Be sure that job descriptions accurately reflect the employer’s expectations and the positions actual requirements.
- Monitor employee performance to ensure the employee does not fall below the 50 percent threshold.
- Engage in annual audits to determine if employees are
properly classified. Also, schedule audits whenever there
has been a job reorganization or reclassification.
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