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Inside Salesperson Exemption Under California Law


Has your employer classified you as an inside salesperson? Here are five things that you should know about the inside salesperson exemption under California law:


No. 1: In order to be properly classified as an inside salesperson under California law, you must meet all of the following requirements: (a) You must earn more than 1.5 times the minimum wage; (b) More than 50 percent of your compensation must consist of commissions; and (c) You must work in an industry covered by either Industrial Welfare Commission (“IWC”) Wage Order No. 4 or Wage Order No. 7 (see below).

No. 2: IWC Wage Order No. 4 applies to all persons employed in professional, technical, clerical, mechanical, and similar occupations. IWC Wage Order No. 7 applies to all persons employed in the mercantile industry.

No. 3: If you are properly classified as an inside salesperson under California law, your employer is not required to pay you overtime compensation. 

No. 4: However, as an inside salesperson, you are still entitled to meal and rest breaks. Specifically, if you work more than five hours during a day, you are entitled to one 30-minute meal break. If you work more than ten hours during a day, you are entitled to two 30-minute meal breaks. Regarding rest breaks, you are entitled to one 10-minute rest break if you work 3.5 hours to 6 hours during a day; two 10-minute rest breaks if you work more than 6 hours up to 10 hours during a day, and three 10-minute rest breaks if you work more than 10 hours up to 14 hours during a day.

No. 5: If your employer fails to provide you with a meal break or rest break, your employer must pay you one hour of pay at your regular rate of compensation for each day that such failure occurs. If, on a particular day, your employer fails to provide you with a meal break and a rest break, then your employer must pay you two hours of pay at your regular rate of compensation.


If you have questions about the inside salesperson exemption, call ((916) 612-0326) or email (contact@finleyemplaw.com) Finley Employment Law today. We serve clients throughout California, including Sacramento, Roseville, Walnut Creek, San Ramon, and Concord. The information in this blog post is for general informational and advertising purposes only and is not, nor is it intended to be, legal advice. Instead, you should speak with a California employment attorney for advice regarding your individual situation.

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