News Notes: Congress May Make Inside Sales Employees Exempt from Overtime

Legislation is pending in Washington that would treat certain employees who perform inside sales work the same as outside salespeople when it comes to overtime pay. Inside sales personnel are currently entitled to overtime after 40 hours of work in a week. However, a bill making its way through the House of Representatives would exempt those employees from overtime if their work requires specialized or technical knowledge about the products or services being sold, and the job does not involve cold calling. The legislation is based on the theory that new technologies are permitting many inside sales employees to perform work that previously could only be done on the road – and which would be exempt from overtime. Although most private employers in California are covered by state overtime laws that require inside sales workers to be paid overtime, the federal initiative may spur changes in the California rules as well.