C.F.R.
»
Title 29
» CHAPTER V—WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR › SUBCHAPTER A—REGULATIONS › PART 541—DEFINING AND DELIMITING THE EXEMPTIONS FOR EXECUTIVE, ADMINISTRATIVE, PROFESSIONAL, COMPUTER AND OUTSIDE SALES EMPLOYEES › Subpart F—Outside Sales Employees
(a) 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 under which it is performed. Promotional work that is actually performed incidental to and in conjunction with an employee's own outside sales or solicitations is exempt work. On the other hand, promotional work that is incidental to sales made, or to be made, by someone else is not exempt outside sales work. An employee who does not satisfy the requirements of this subpart may still qualify as an exempt employee under other subparts of this rule.
(b) A manufacturer's representative, for example, may perform various types of promotional activities such as putting up displays and posters, removing damaged or spoiled stock from the merchant's shelves or rearranging the merchandise. Such an employee can be considered an exempt outside sales employee if the employee's primary duty is making sales or contracts. Promotion activities directed toward consummation of the employee's own sales are exempt. Promotional activities designed to stimulate sales that will be made by someone else are not exempt outside sales work.
(c) Another example is a company representative who visits chain stores, arranges the merchandise on shelves, replenishes stock by replacing old with new merchandise, sets up displays and consults with the store manager when inventory runs low, but does not obtain a commitment for additional purchases. The arrangement of merchandise on the shelves or the replenishing of stock is not exempt work unless it is incidental to and in conjunction with the employee's own outside sales. Because the employee in this instance does not consummate the sale nor direct efforts toward the consummation of a sale, the work is not exempt outside sales work.
Notes of Decisions
Christopher v. Smithkline Beecham Corp. (2012)
scotus · cites it 6×
“” 29 CFR §541.503 (a) (emphasis added). But it is not exempt if it is “incidental to sales made, or to be made, by someone else.”
Gregory v. First Title of America, Inc. (2009)
ca11 · cites it 8×
“Promotional work is covered by 29 C.F.R. § 541.503 . Promotional work may or may not be exempt outside sales work, depending on the circumstances under which it is performed.”
Davina Hurt v. Commerce Energy, Inc. (2020)
ca6 · cites it 4×
“501 , and 29 C.F.R. § 541.503 . Section 541.500 defines an outside salesperson as someone “customarily and regularly engaged away from the employer’s place or places of businesses,” whose primary duty is either 1) “making sales” or 2) “obtaining orders or contracts for services.”
Thomas Killion v. KeHE Distributors (2014)
ca6 · cites it 3×
“Third, the evidence indicates that even if the foregoing activities are considered “promotional work” within the meaning of 29 C.F.R. § 541.503 , this work could be seen to be in furtherance of sales made by the account managers rather than in furtherance of the plaintiffs’ own…”
Christopher v. SmithKline Beecham Corp. (2011)
ca9 · cites it 2×
“29 C.F.R. § 541.503 (a). To illustrate the concept of promoting sales, as opposed to *391 selling, the Secretary’s regulations provides two examples — a manufacturer’s rep-, resentative and a company representative who visits chain stores: (b) A manufacturer’s representative,…”
Hantz v. Prospect Mortgage, LLC (2014)
vaed
“” 29 C.F.R. § 541.503 (a). The DOL has concluded that selling or sales related activity outside the office only “one or two hours a day, one or two times a week” can satisfy the second prong of the exemption.”
Modeski v. Summit Retail Solutions, Inc. (2022)
ca1 · cites it 2×
“" 29 C.F.R. § 541.503 (c). In that scenario, "[t]he arrangement of merchandise on the shelves or the replenishing of stock" could be exempt if it were "incidental to and in conjunction with the employee's own outside sales.”
Fields v. AOL Time Warner, Inc. (2003)
tnwd · cites it 2×
“To determine whether work is “incidental to and in conjunction” with the employee’s sales or solicitations, the regulation provides that [w]ork performed “incidental to and in conjunction with the employees own outside sales or solicitations” includes not only incidental…”
Nielsen v. Devry, Inc. (2003)
miwd
“29 C.F.R. § 541.503 (emphasis added). Here, Plaintiffs did not have offices on DeVry’s premises.”
— 29 C.F.R. § 541.503(a) — 2 cases
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