‘Inside Sales’ Exemption Missing From Revised N.J. Overtime Rules

October 20, 2011 – In The News
New Jersey Law Journal

New Jersey has revamped its overtime exemptions this year in effort to make them friendlier to employers while inadvertendly taking away the provisions they enjoyed in the past. The new rules state that companies must pay time and a half for work in excess of 40 hours per week. Now regulators are trying to restore the "inside sales" exemption, which denied overtime to salespeople who are paid mostly by commission and make more than $400 per week.

The Department of Labor and Workfoce Development said this was an unintended consquence and would work to reverse it as soon as possible, which will take months to revise.

Lawyers for employers advise them to pay the overtime in order to avoid litigation. Mark Tabakman said he will advise clients "to comply with the law as it currently stands," adding its "better safe than sorry."