Wednesday, September 28, 2011

Overtime for Sales Persons in Pennsylvania - Exempt or Non-Exempt?

If You Are a Sales Person in Pennsylvania, You May be Entitled to Overtime Even if Your Employer Says You Are Not

Under Pennsylvania Law, Most Salespeople Are Non-Exempt From Overtime Laws,
and Therefore Entitled to be Paid Overtime
Click Here to read the rules for overtime for people commonly known (and often misclassified) as outside salespersons.

If You Spend Less Than 80% of Your Time on the Road Making Sales Calls, You Are Probably NOT Exempt From receiving Overtime Pay Even if the Company Says You Are Exempt

The Key - the 80% Rule: if you are employed in Pennsylvania, and spend less than 80% of your time actually on the road making sales calls, you are likely entitled to overtime.

The Company Does Not Make the Rules for Overtime Eligibility - State and Federal Lawmakers Do

I hope it does not offend or surprise you to hear that corporate America is not always honest with its employees.

"I swear, you are not entitled to overtime."
This is particularly true, and often the case, where the laws relating to overtime are concerned.

In Pennsylvania, persons employed as outside sales persons are exempt from (i.e. not entitled to) overtime.  

Hence, many Pennsylvania workers are often designated as "outside sales persons" by their employer, and are told that they are exempt from the benefits of the overtime laws such as the Fair Labor Standards Act (federal law) and Pennsylvania's Minimum Wage Act.

If Your Principal Duties Consist of Checking Product Placement, Product Display or Distributing Product Samples, You Are Likely Not Employed as an Outside Sales Person Under Pennsylvania Overtime Laws

However, many such persons spend most of their time checking product placement and displays, or handing out sample products, and actually spend very little of their time calling upon prospective new accounts or trying to "upsell" existing customers.

If those are your principal duties, you are not actually not an outside sales person under Pennsylvania's Minimum Wage Act, which makes clear that only persons who spend 80% or more of their time on the road soliciting prospective new accounts or selling new products to existing customers are actually engaged in "outside sales."

THIS is an Outside Sales Person
Handing Out Drug Samples is
NOT Making a Sales Call
I Signed a Contract Saying I Am Not Eligible (or are "Exempt") to Overtime Pay; Does That Mean I am Not Entitled to Overtime Pay?

No, it does not.

That contract is not worth the paper it is written on.

Agreeing That You Are Not Eligible for Overtime Does NOT
Eliminate Your Right to Overtime
The test is whether, under the law, your principal duties IN FACT consist of making outside sales calls 80% of the time or more.

Representing Pennsylvania Employees
With Overtime Claims Since 1991
Philadelphia Area Overtime Attorney Representing Employees

John A. Gallagher is an employment lawyer who represents employees in Pennsylvania. 

John typically represents employees who need an employment lawyer in Philadelphia County, Chester County, Delaware County, Bucks County, Berks County, Lancaster County and Montgomery County.

Pennsylvania Employment Attorney Provides Free Telephone Consultations for Overtime Claims

If you are looking for an employment lawyer, and live in Malvern, Wayne, King of Prussia, Downingtown, Glenside, Doylestown, Radnor, Newtown Square, Exton, Philadelphia, West Chester, Skippack, Langhorne, Haverford, Nether Providence, Broomall, Drexel Hill, Reading or any of their surrounding towns, feel free to send me an e-mail or give me a call.  I am always glad to spend some time with people via a free telephone consultation.

Need an Employment Labor Lawyer Near Philadelphia?

Click Here if you have questions about any aspect of employment law, from wrongful termination, to wage and overtime claims, to discrimination and retaliation laws, to Family and Medical Leave

Click Here if you have questions about any aspect of Pennsylvania Unemployment Law, from willful misconduct, to voluntary quit, to Referee Hearings, to severance issues

Click Here to e-mail John directly.

Thanks for checking in with us.


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