DOL Issues Guidance for Classifying Home Salespersons As Exempt

In a recently issued opinion letter, the Department of Labor (DOL) reaffirmed its long-standing position that salespersons of newly-constructed homes who work out of temporary sales facilities may be exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). The DOL also provided guidance on the level of activities that must take place away from an employer’s place of business in making sales in order to be considered exempt as an outside salesperson, what constitutes an “employer’s place of business,” and its position that activities “incidental” to sales activities should be included in making a determination of outside sales status. The opinion letter may help home construction and sales companies facing overtime claims by outside salespersons.