Pauline is a HR Professional for her organization and she's meeting with the sales manager Jim. Jim wants to know if Randy, one of his sales people, is considered exempt or not because he's doing outs

Question

Options

• ARandy must earn all income from commission.
• BRandy must not have a contract to complete sales.
• CRandy must be customarily engaged away from the employer's place of business.
• DRandy must earn more than $48,234 per year.

• A
  6% (3)
• B
  4% (2)
• C
  72% (34)
• D
  17% (8)

Explanation

Under the Fair Labor Standards Act (FLSA), the outside sales exemption has exactly two requirements: (1) the employee's primary duty must be making sales or obtaining orders/contracts, and (2) the employee must be customarily and regularly engaged away from the employer's place of business. There is no minimum salary threshold for the outside sales exemption (eliminating D), no requirement that all income come from commission (eliminating A), and no restriction on having a sales contract (eliminating B). Because Randy works outside the office as his normal pattern, he meets both criteria and qualifies as exempt.

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