Outside salespersons are exempt from legal requirements for overtime, wages, meal and rest breaks

An employee who works more than half the time away from the employer’s place of business qualifies as an outside salesperson, who would be exempt from the legal requirements for overtime, wages, and meal and rest breaks, a recent California case said.

Warehouse Demo Services, Inc. – the defendant in the case of Espinoza v. Warehouse Demo Services, Inc. – was the exclusive product demonstration company for Costco Wholesale. The defendant employed demonstrators, which were classified as part-time, nonexempt, hourly, and eligible for overtime pay.

The plaintiff – who worked as a demonstrator for the defendant for around five years – filed a class action complaint that alleged violations under California’s Labor Code, including failure to pay wages and/or overtime and failure to provide meal and rest breaks.

In response, the defendant brought a summary judgment motion. It argued that the plaintiff lacked the standing to file the claims because she fell under the outside salesperson exemption. The exemption allegedly applied because the plaintiff was selling away from the defendant’s place of business, given that the defendant did not own or lease space at Costco.

The trial court granted the defendant’s summary judgment motion. It made the following findings:

• The outside salesperson exemption was applicable
• The plaintiff did not work at the defendant’s place of business because it...

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