Outside Sales Person is exempt from California overtime if the employee earns more than 1.5 times the state minimum wage and more than half of compensation is in commissions.

Outside Sales Person is exempt from California overtime if the employee earns more than 1.5 times the state minimum wage and more than half of compensation is in commissions.

• A. Outside Sales Person
• B. Commissioned Inside Sales Employee
• C. Professional Exemption
• D. Administrative Exemption

Answer: (A)

This is about California’s outside sales exemption from overtime. To qualify, the job must meet both a duties test and a compensation test. The duties test requires that the main job is selling tangible or certain services and doing so primarily outside the employer’s place of business, with the employee regularly working away from that location. The compensation test requires two things: the employee must earn more than 1.5 times the state minimum wage, and more than half of the employee’s total pay must come from commissions. When those conditions are met, the Outside Sales Person can be exempt from overtime. That’s exactly what the scenario describes: earnings above 1.5 times minimum wage and more than half of compensation from commissions, coupled with a primary duty of outside sales. The other options don’t fit because a commissioned inside sales role wouldn’t meet the “outside” duty requirement, while the Professional and Administrative exemptions apply to different kinds of work (advanced, specialized professional duties; or non-sales, office-based administrative tasks) and don’t hinge on the outside-sales compensation structure.

This is about California’s outside sales exemption from overtime. To qualify, the job must meet both a duties test and a compensation test. The duties test requires that the main job is selling tangible or certain services and doing so primarily outside the employer’s place of business, with the employee regularly working away from that location. The compensation test requires two things: the employee must earn more than 1.5 times the state minimum wage, and more than half of the employee’s total pay must come from commissions.

When those conditions are met, the Outside Sales Person can be exempt from overtime. That’s exactly what the scenario describes: earnings above 1.5 times minimum wage and more than half of compensation from commissions, coupled with a primary duty of outside sales. The other options don’t fit because a commissioned inside sales role wouldn’t meet the “outside” duty requirement, while the Professional and Administrative exemptions apply to different kinds of work (advanced, specialized professional duties; or non-sales, office-based administrative tasks) and don’t hinge on the outside-sales compensation structure.