Tips to Help Employers
Correctly Classify Sales People

Employers should take the following steps to help be certain they have correctly classified members of their sales force as exempt or non-exempt.


1. Examine whether the employee meets the exemption requirements on a weekly basis.

2. Pay close attention to guaranteed draw programs and whether they are in fact meeting the requirements for the inside sales exemption.


1. Determine whether the employee spends at least fifty (50%) percent of his or her work time engaged in pure sales.

2. 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.

3. Be sure that job descriptions accurately reflect the employer’s expectations and the positions actual requirements.

4. Monitor employee performance to ensure the employee does not fall below the fifty (50%) percent threshold.

5. Engage in annual audits to determine if employees are properly classified.  Also, schedule audits whenever there has been a job reorganization or reclassification.