Does Working From Home Affect A Salesperson’s Compensation?

Your outside sales position may look completely different when compared to a few months ago. If your traveling role has undergone a drastic shift, your compensation may need to make a move as well.

Outside sales could be one of the most affected positions when it comes to exemptions for minimum wage and overtime pay. If your company makes big changes, it’s crucial that you understand how those modifications can affect your paycheck.

Tallying tasks

Just because the company still calls you an outside salesperson doesn’t mean you’re still exempt. There are usually two regulations you need to meet. You largely do your job away from the office, and that job is mainly sales. Changes to either of these standards could mean it’s time to take another look at where you fit in California’s labor laws.

Location alteration

Outside sales usually take place at the customer’s location, trade shows or events. When the bulk of your time is on the road, you likely fit the exemption. When your company puts restrictions on travel, you may wind up doing most of your work from home. The law could consider your home office an extension of your employer’s office, and that designation could take away your exempt status.

Adding obligations

If your location isn’t the only thing changing, you’ve got even more cause to look at your exemption. It’s your actual role in the company, not your title, that matters when deciding who qualifies. You may have to determine if new teleworking duties still fit the legal definitions for sales. Huge changes in your job description could be enough to move the needle, but one-off work probably won’t change anything.

You may remain a salesperson at heart and in title, but that doesn’t mean the law sees you that way. The work you’re doing now could mean you’re no longer an exempt employee, and you may have some extra pay coming your way.

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