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Are Inside Sales Employees Entitled To Overtime?

If you are an inside salesperson, you may be entitled to overtime pay. The job duties that you perform will determine whether or not your employer must pay overtime to you. While this issue may be confusing, there is one simple key. Your job duties instead of your title are what is important to the determination.

Mistakes employers make

Some employers make the mistake of treating all commissioned salespeople as exempt workers. Many companies employ inside salespeople who are not considered to be exempt for purposes of overtime pay. An increasing number of inside salespeople are being wrongly classified as exempt employees. The Department of Labor has said that inside salespeople are non-exempt in general. This means that they should be paid overtime for all of the hours that they work in a week in excess of 40. When a company identifies a misclassification and corrects it, it must also compensate the employees who were misclassified for the unpaid overtime that they are owed from the last two to three years.

Schedule an appointment today. Call (856) 685-7420 or

Schedule an appointment today.
Call (856) 685-7420 or

Overtime requirements for corporate salespeople

People who work in corporate sales might also be entitled to overtime pay. These are workers who make sales from home or from inside of the office. People who don’t have to leave to make sales are non-exempt workers who should receive overtime pay.

Overtime for non-exempt sales workers

If your job’s primary duty is outside sales, those duties must be substantive and make up your primary duty. If this describes your job, you are exempt from overtime pay requirements. If your job also requires you to complete other tasks besides outside sales, you might still be entitled to overtime pay.

DOL’s position

The DOL has issued an opinion that indicates that inside salespeople are not exempt under the administrative exemption of the FLSA. The opinion indicated that mortgage loan officers are not exempt employees because their jobs in inside sales constitute nonexempt work. This opinion is not limited to just mortgage loan officers and applies to all inside salespeople. An employer has to make sure that its salespeople sell to customers outside of the business as their primary duty in order to classify them as exempt.

If you are an inside salesperson who has been misclassified as exempt, you might want to talk to the attorneys at Swartz Swidler. We may be able to recover the overtime pay to which you should be entitled, including back amounts and overtime pay going forward. Fill out our contact form to schedule your consultation today.

Most Frequently Asked Question: Do I Have A Case?

While it is true that every case is different, The law is pretty clear in most cases. The best way to determine if you have a case is to contact one of our attorneys. For more information check out the FAQ below or visit our FAQ Page

Most Frequently Asked Question:
Do I Have A Case?

While it is true that every case is different, The law is pretty clear in most cases. The best way to determine if you have a case is contact one of our attorneys. For more information on a just a few scenarios checkout the flip box FAQ below or visit our FAQ Page.

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Cherry Hill, New Jersey 08034

Phone: (856) 685-7420
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Philadelphia, PA 19107

Phone: (215) 995-2733

Our Locations

Cherry Hill Headquarters

1101 Kings Hwy N
Suite 402
Cherry Hill, New Jersey 08034

Phone: (856) 685-7420
Fax: (856) 685-7417

Philadelphia Satellite Office

123 South 22nd Street
Philadelphia, PA 19107

Phone: (215) 995-2733