Can I pay outside salespeople a salary instead of a commission and follow the minimum salary rules for exempt employees?
HRCalifornia
Yes, it is OK to pay outside salespeople a salary instead of a commission. Actually, an outside salesperson may be paid in any manner, including hourly.
Outside salespeople do not need to meet the minimum salary requirement that covers the executive, administrative and professional exemptions, if they meet the outside salesperson exemption.
Any individual properly classified as an outside salesperson is exempt from coverage of Section 1 of the Wage Orders, meaning that the rules regarding minimum wage, overtime, meal and rest breaks, timekeeping, etc., do not apply.
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