Employer intent for exempt workers is crucial
A lawsuit filed against a major food producer and distributor by a former outside sales employee highlights the need for businesses to clearly state intent for workers as well as track time and attendance.
The ex-worker had claimed that despite being hired as a salesperson with the main duties of selling and delivering product, he mostly provided fresh items, rotated stock and cleaned shelves in stores along his sales route, according to legal news provider Law360. The plaintiff filed the suit, eventually heard by the U.S. Court of Appeals for the 11th District, after being released by the company to acquire overtime pay that he felt he was due.
The Fair Labor Standards Act provides an exemption from overtime pay for outside sales employees, as long as their main job function is to sell goods, services or contracts and the workers usually spend their time away from a main office.
Testimony from sales brokers at the company showed that the employees met the exemption conditions listed above, worked for commission and focused client interaction on improving sales volume. The court ruled that although the plaintiff did not actively follow the expectations of his position, his duties and expectations were clearly described to him when he was hired.
The court's ruling shows the importance of both explaining job requirements to new hires and tracking employee attendance.
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