FLSA outside sales exemption.

The rule in 541.500

29 CFR 541.500(a) defines an outside salesman as an employee (1) whose primary duty is making sales within the meaning of section 3(k) of the Act, or obtaining orders or contracts for services or for the use of facilities for which the client or customer will pay, and (2) who is customarily and regularly engaged away from the employer's place or places of business in performing that primary duty. Paragraph (c) states that the salary requirements of subpart G do not apply to outside sales employees.

Work that counts as exempt

Under 541.500(b), work done incidental to and in conjunction with the employee's own outside sales or solicitations, including incidental deliveries and collections, is exempt outside sales work. So is other work that furthers the employee's sales efforts, for example writing sales reports, updating the sales or display catalogue, planning itineraries and attending sales conferences. "Primary duty" is defined at 541.700, which is separate from this page.

What this test does not do

• It does not turn on a salary. A pure-commission or hourly outside sales employee can be exempt, if both duties tests are met.
• It does not cover inside sales. If the employee takes orders mainly from the employer's premises or by phone or internet from the office, the "away from the employer's place of business" test is the one at risk.
• It is a federal rule. State law can differ.

Worked example

A territory representative spends most of the week visiting customers to take orders, then writes call reports and plans routes on the road or at home. Those reports and itinerary planning are exempt sales-furthering work under 541.500(b), so the primary duty is still sales and the away-from-premises test is met. A counter salesperson who occasionally visits a customer once a quarter does not meet "customarily and regularly" away from the place of business, and the primary duty may be inside sales.

How to use the checker

The checker only tests the two statements in 541.500(a). Whether a particular job satisfies them is a question of fact about what the employee actually does, which this page cannot decide.

Sources

• 29 CFR 541.500 General rule for outside sales employees: the two duties tests, incidental work and the salary exclusion. Read November 2, 2026.

Regulation text is the eCFR version current to October 29, 2026. The $684 weekly figure is the number printed in 541.100 and 541.300 in that version, which cite a May 15, 2026 amendment.