[Congressional Record Volume 141, Number 47 (Tuesday, March 14, 1995)]
[Extensions of Remarks]
[Pages E594-E595]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                       INSIDE SALES COMPENSATION

                                 ______


                         HON. HARRIS W. FAWELL

                              of illinois

                    in the house of representatives

                        Tuesday, March 14, 1995
  Mr. FAWELL. Mr. Speaker, today I am joined by my colleague, Mr. 
Petri, in the introduction of legislation to amend the Fair Labor 
Standards Act of 1938 [FLSA] to make uniform the application of the 
overtime exemption for inside sales personnel. This legislation is 
necessary to repair the inequity that presently exists between retail 
and wholesale establishments.
  [[Page E595]] Under the FLSA, the treatment of sales people for 
overtime purposes varies significantly based on circumstance. As it now 
exists, a wholesaler's inside salesperson must be paid time-and-one-
half for his or her additional hours, while the employee performing 
precisely the identical job at a retail establishment does not. During 
an economic downturn, these costs are considerable and have contributed 
to layoffs and comparable overhead reduction.
  In 1938, Congress had no way of foreseeing the effect that 
distinctions in the overtime law could have a century later. 
Differences based on an ability to supervise or a retail-wholesale 
dichotomy no longer serve a useful purpose. As old practices of doing 
business change, the differences between a wholesaler's sales staff and 
a retailer's sales staff are no longer significant.
  This legislation would make the application of this particular 
overtime exemption under the FLSA consistent for retail, wholesale, and 
service establishments. I would like to note that the provisions 
defining who is covered under section 13(a)(1) of the FLSA and the 541 
regulations are very confusing. Apparently, the language in the Act is 
the result of various amendments over the years. As we consider this 
legislation, I hope that we can also work to simplify and streamline 
the language.


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