Compared to many states, California is home to decent labor laws—especially for most hourly workers. Both California law and the federal Fair Labor Standards Act (FLSA) cover protections for workers. If you are a salesperson who works outside the office or on commission, however, the law becomes a little more confusing. Here are answers to some common questions.
Outside sales employees are considered exempt from overtime pay under the California law, but only under certain situations. The employee’s main job duty must be in sales, and they must spend the majority of their time away from the place of business. In addition, they must receive a certain minimum base salary.
Salespeople who make more than half their money on commission are exempt from overtime pay in most situations. However, their pay must already exceed one and a half times the minimum wage.
An outside salesperson spends more than half their time off-site from the employer’s business to sell products, services, or facility use.
The same exemptions that cover overtime pay also apply to minimum wage. Although many salespeople are exempt from minimum hourly wages, they are guaranteed a minimum salary.
On January 1, 2020, California raised that salary minimum to:
The formula is slightly different for commissioned salespeople, as indicated above.
A salesperson enjoys all the legal protections of other employees.
For example, they have:
If you think your employer is not compensating you correctly or is violating any other labor laws, you may have legal recourse, but you will need support from an experienced legal professional.
At Frontier Law Center, our attorneys use modernized legal strategies and cutting-edge case management software to deliver a revolutionary level of service for each client. Employment law is constantly changing, which is why you need a team that is ready to adapt to new challenges at every turn. If your employer has violated your rights, we can help you report these violations to the California Department of Industrial Relations and, if appropriate, bring a claim against your employer. No matter what you have experienced, you can count on our dedicated support.