Takeaway: California's outside salesperson exemption to wage and hour laws did not apply where the employer controlled the employee's hours and working conditions, although the employer did not own or lease the location where the employee worked.
An employee is not subject to California's outside salesperson exemption where the employer controls the employee's hours and working conditions, even if they work at a fixed site not owned or leased by the employer, a California appeals court recently ruled. Therefore, a product demonstrator at a warehouse store, who sued the product demonstration company for wage and hour violations, could proceed with her class-action lawsuit, the court said.
Outside salespersons in California are exempt from statutory overtime, minimum wage, reporting time and meal-and-rest break requirements. California regulations define "outside salesperson" as a salesperson who regularly works more than half the working time away from the employer's place of business. The main reason for this exemption is that outside salespersons generally control their own hours and are paid on a commission basis.
The employer here is the exclusive product demonstration company for a large warehouse store chain. Its employees demonstrate various products inside the stores. The demonstrators are generally assigned to a single store and do not travel from store to store.
The company does not lease any portion of the warehouse store, but maintains an office space within...
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