Timeshare Salespeople Are Entitled to Overtime Pay

The U.S. Department of Labor recently published a formal opinion letter stating that timeshare salespeople are not exempt from the FLSA’s wage and hour provisions under the “outside sales” exemption.  Timeshare salespeople’s primary duties are to sell timeshare condominiums at resorts typically found in exotic locals and tourist destinations throughout the United States, including Florida, Hawaii, Puerto Rico and even Gatlinburg and Nashville, Tennessee.  Consumers who purchase time shares buy a share of the condo (i.e. certain weeks of the year) rather than pay for the entire dwelling. 

Timeshare salespeople typically earn commissions on the timeshares they sell. The DOL’s opinion letter underscores the legal requirement that “outside salespeople” must be employed away from the employer’s place of business. The typical timeshare salesperson, however, works on location at the employer’s resort, which is the employer’s place of business. As such, timeshare salespeople are not exempt under the outside sales exemption and should receive overtime wages as provided by the FLSA (unless another exemption applies). 
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