Question

Campbell was a sales representative and account manager for Keurig Dr. Pepper. Campbell's primary responsibilities are: to sell Canada Dry Ginger Ale and Dr Pepper products to grocery stores, convenience stores and other sales outlets, conducts sales out in the field via face-to-face interactions with both potential and existing customers. Keurig Dr. Pepper also employed merchandisers, who did not sell the products but performed tasks associated with their distribution and promotion, including restocking shelves, filling vending machines and setting up displays. The account managers, who serviced the smaller accounts themselves, regularly worked between 55 and 72 hours each week. Keurig Dr. Pepper paid them a salary, bonuses and commissions, but it did not pay them additional compensation for the overtime. In contrast, the merchandisers did receive overtime compensation. Campbell and the other account managers, filed a suit alleging that they were entitled to overtime compensation. Are the account managers/sales representatives entitled to overtime? Explain.

Answer 1

The accounts managers/sales representatives mentioned in the given situation work outside the company selling the products to retailers and customers which makes them outside sales representatives. As per law outside sales representatives are exempted from overtime pay as they receive bonuses and commissions for their extra work . Hence even when they worked more than 40 hours , which is a the limit to make employees liable for overtime, outside sales representatives are an exemption. Hence the account managers/sales representatives are not entitled to overtime.