29 C.F.R. § 541.501

Making sales or obtaining orders

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(a) Section 541.500 requires that the employee be engaged in:

(1) Making sales within the meaning of section 3(k) of the Act, or

(2) Obtaining orders or contracts for services or for the use of facilities.

(b) Sales within the meaning of section 3(k) of the Act include the transfer of title to tangible property, and in certain cases, of tangible and valuable evidences of intangible property. Section 3(k) of the Act states that “sale” or “sell” includes any sale, exchange, contract to sell, consignment for sale, shipment for sale, or other disposition.

(c) Exempt outside sales work includes not only the sales of commodities, but also “obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer.” Obtaining orders for “the use of facilities” includes the selling of time on radio or television, the solicitation of advertising for newspapers and other periodicals, and the solicitation of freight for railroads and other transportation agencies.

(d) The word “services” extends the outside sales exemption to employees who sell or take orders for a service, which may be performed for the customer by someone other than the person taking the order.

Notes of Decisions
Cited in 30 cases (3 in the last 5 years), 1977–2025 · leading case: Christopher v. Smithkline Beecham Corp., 132 S. Ct. 2156 (2012).
Christopher v. Smithkline Beecham Corp., 132 S. Ct. 2156 (2012). · cites it 9× “The DOL relies heavily on 29 CFR §541.501 , which provides that “[s]ales .”
Gregory v. First Title of Am., Inc., 555 F.3d 1300 (11th Cir. 2009). · cites it 8× “" 29 C.F.R. § 541.501 defines "making sales or obtaining orders" as follows: (b) Sales within the meaning of section 3(k) of the Act include the transfer of title to tangible property, and in certain cases, of tangible and valuable evidences of intangible property.”
Clements v. Serco, Inc., 530 F.3d 1224 (10th Cir. 2008). · cites it 4× “" 29 C.F.R. § 541.501 (e) (2003). Presumably, the majority does not place primary reliance on this rationale, see Maj.”
Flood v. Just Energy Mktg. Corp., 904 F.3d 219 (2d Cir. 2018). · cites it 2× “500 (a) ; 29 C.F.R. § 541.501 . Although it is true that related regulations refer to factors such as sales training and the degree of supervision (among many other factors), these related regulations concern an analytically distinct issue of whether an employee's "primary duty"…”
Christopher v. SmithKline Beecham Corp., 635 F.3d 383 (9th Cir. 2011). · cites it 3× “29 C.F.R. § 541.501 (b). In the regulations, the Secretary draws a distinction between sales work and promoting: Promotion work is one type of activity often performed by persons who make sales, which may or may not be exempt outside sales work, depending upon the circumstances…”
Davina Hurt v. Com. Energy, Inc., 973 F.3d 509 (6th Cir. 2020). · cites it 2× “500 , 29 C.F.R. § 541.501 , and 29 C.F.R. § 541.”
Nielsen v. Devry, Inc., 302 F. Supp. 2d 747 (W.D. Mich. 2003). · cites it 2× “29 C.F.R. § 541.501 . (a) Opinion Letters The Department of Labor (“DOL”) has issued two opinion letters addressing the *755 question of whether the college “admissions counselors” or “enrollment advisors” described in the factual scenarios submitted to the agency performed…”
Thomas Killion v. KeHE Distributors, 761 F.3d 574 (6th Cir. 2014). “” 29 C.F.R. § 541.501 (b). Finally, the promotion-work regulation identifies “[p]romotion work” as “one type of activity often performed by persons who make sales, which may or may not be exempt outside sales work, depending upon the circumstances under *582 which it is…”
Amendola v. Bristol-Myers Squibb Co., 558 F. Supp. 2d 459 (S.D.N.Y. 2008). “” 29 C.F.R. § 541.501 (b). DOL regulations “have the force of law and are to be given controlling weight unless they are found to be arbitrary, capricious, or manifestly contrary to the statute.”
In Re Novartis Wage & Hour Litig., 611 F.3d 141 (2d Cir. 2010). “29 C.F.R. § 541.501 (b) (emphasis added).”
Kuzinski v. Schering Corp., 604 F. Supp. 2d 385 (D. Conn. 2009). · cites it 3× “s the words “sale” or *394 “sell” to “include[] any sale, exchange, contract to sell, consignment for sale, shipment for sale, or other disposition,” § 203(k), and regulations promulgated by the Department of Labor (“DOL”) 10 specify that this includes “the transfer of title to…”
Alcala v. Verbruggen Palletizing Solutions, Inc., 531 P.3d 1085 (Idaho 2023). “, the term “sale” is generally used to denote a transfer of personal or real property.”
— 29 C.F.R. § 541.501(b) — 1 case
Carrera v. E.M.D. Sales, Inc. (D. Maryland 2019).
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