Overtime Pay For Inside Sales Representatives

For some people, commissioned sales work can be highly lucrative. But in many cases, inside sales representatives (salespeople who always or usually work in a fixed location) are being paid less than they are entitled to receive under the law.

The rules governing overtime pay for inside sales can be complex and confusing. Because of this, many employers are failing to pay overtime to their workers — sometimes by honest mistake and other times on purpose.

At Moreland Verrett, P.C., we understand the nuances of both Texas and federal laws regarding inside sales compensation. We can help you determine if you are being underpaid. And if so, we can help you seek appropriate compensation.

How Does Overtime Pay Work?

Many people mistakenly believe that inside sales representatives are exempt from overtime pay. But this isn’t true in all cases. In fact, the overtime pay exemption can be quite narrow.

Overtime eligibility depends on three considerations (with many loopholes, caveats and complicated requirements). In general, the three considerations are:

  • Whether the employee is selling “retail” products;
  • Whether the employee’s total compensation (including base pay and commission) exceeds 150 percent of the minimum wage; and
  • Whether the employee’s commission portion of compensation exceeds the salary portion during a designated “representative period”

As you can see, these provisions can be confusing. That’s why the best course of action is to speak with an experienced employment law attorney who can assess the specific details of your job and give you case-specific advice.

Contact Us For A Free Consultation

Moreland Verrett, P.C., serves clients in the Austin area and throughout Texas. For a free discussion of your case with our experienced employment lawyer, call us at 512-782-0567, or fill out our online contact form.