Does Minnesota Law Recognize an Outside Salesperson Exemption?

Yes – like the federal Fair Labor Standards Act (FLSA), outside salespersons are exempt from the overtime and minimum wage requirements of Minnesota law.  See Minn. Stat. § 177.23, Subd. 7(6).

In order to qualify for the exemption, the following requirements must be satisfied:

  1. The employee must be hired to make sales of, or obtain orders or contracts for, materials, services, or the use of facilities for which payment will be made; and
  2. The employee’s sales activities must occur primarily away from the employer’s premises, and the employee may not conduct no more than 20 percent of his or her sales on the employer’s premises; and
  3. The employee’s hours of nonoutside sales work may not exceed 20 percent of the hours worked by employees who are not outside salespersons.

See Minn. R. § 5200.0220.  An employee does not need to be paid on a salary basis to qualify as an exempt outside salesperson under Minnesota law.

Takeaway:  Employees who qualify as exempt under the FLSA’s outside salesperson exemption also likely qualify as exempt under Minnesota law.

About Michael Miller

Michael is a Chambers-rated attorney in Briggs and Morgan's Employment, Benefits, and Labor group and is head of the firm’s Employment Law Counseling and Compliance practice group. He has 25 years experience counseling employers to prevent unwanted litigation and advises companies of ongoing changes in federal, state and local employment law. Michael advises employers in all areas of employment law including discipline and discharge, leaves of absence, wage and hour compliance, non-compete and confidentiality agreements, affirmative action plans, background checking, and drug/alcohol testing. For Michael's full bio, click here.

Posted on July 30, 2012, in Wage and Hour and tagged . Bookmark the permalink. Leave a comment.

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