IB
Union Calendar No. 313
105TH CONGRESS
2D SESSION
H. R. 2888
[Report No. 105–558]
To amend the Fair Labor Standards Act of 1938 to exempt from the mini-
mum wage recordkeeping and overtime compensation requirements cer-
tain specialized employees.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 7, 1997
Mr. FAWELL (for himself and Mr. ANDREWS) introduced the following bill;
which was referred to the Committee on Education and the Workforce
JUNE 3, 1998
Additional sponsors: Mr. STENHOLM, Mr. BOEHNER, Mr. CANADY of Florida,
Mr. PAUL, Mr. BLILEY, Mr. KNOLLENBERG, Mr. KIND, Mrs. MCCARTHY
of New York, Mr. ROEMER, Mr. BOB SCHAFFER of Colorado, Mr. MAN-
ZULLO, Mr. COLLINS, Ms. RIVERS, Mrs. MYRICK, Mr. CASTLE, Mr. ING-
LIS of South Carolina, Mr. BEREUTER, Mr. GOODE, Ms. STABENOW,
Mrs. JOHNSON of Connecticut, Mr. PAPPAS, Mr. PETERSON of Pennsyl-
vania, Mr. SAM JOHNSON of Texas, Mr. SANDLIN, Mr. MCHUGH, Mr.
HALL of Texas, Mr. GRAHAM, Mr. HOEKSTRA, Mr. SHAW, Mr. TALENT,
Mr. DAVIS of Florida, Mr. BOYD, Mr. MCINTOSH, Mr. LEWIS of Califor-
nia, Mr. UPTON, Mr. DOOLEY of California, Mr. MCKEON, Mr. SOLO-
MON, Mr. BURR of North Carolina, Mr. PITTS, Mr. HOLDEN, Mr. DOO-
LITTLE, Mr. WATTS of Oklahoma, Mrs. FOWLER, Mr. SESSIONS, Mr.
CUNNINGHAM, Mr. NORWOOD, Mr. BARRETT of Nebraska, Mr. SAXTON,
Mr. DEAL of Georgia, and Mr. CRAMER
JUNE 3, 1998
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
A BILL
To amend the Fair Labor Standards Act of 1938 to exempt
from the minimum wage recordkeeping and overtime
compensation requirements certain specialized employees.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Sales Incentive Com-
pensation Act’’.
SEC. 2. EXEMPTION.
Section 13(a) of the Fair Labor Standards Act of
1938 (29 U.S.C. 213(a)) is amended by striking the pe-
riod at the end of paragraph (17) and inserting a semi-
colon and by adding at the end the following:
‘‘(18) any employee employed in a sales position
if—
‘‘(A) the employee’s position requires spe-
cialized or technical knowledge related to prod-
ucts or services being sold;
‘‘(B) the employee’s sales are predomi-
nantly to persons or entities to whom the em-
ployee has made previous sales or the employ-
ee’s position does not involve initiating sales
contacts;
‘‘(C) the employee receives—
‘‘(i) base compensation, determined
without regard to the number of hours
worked by the employee, of not less than
an amount equal to 11⁄2 times the mini-
mum wage multiplied by 2,080; and
‘‘(ii) in addition to the employee’s
base
compensation,
compensation
based
upon each sale attributable to the em-
ployee;
‘‘(D) the employee’s aggregate compensa-
tion based upon sales attributable to the em-
ployee is not less than 40 percent of the
amount specified in subparagraph (C)(i);
‘‘(E) the employee receives a rate of com-
pensation based upon each sale attributable to
the employee which is beyond sales required to
reach the compensation required by subpara-
graph (D) which rate is not less than the rate
on which the compensation required by sub-
paragraph (D) is determined; and
‘‘(F) the rate of annual compensation or
base compensation for any employee who did
not work for an employer for an entire calendar
year is prorated to reflect annual compensation
which would have been earned if the employee
had been compensated at the same rate for the
entire calendar year.’’.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Sales Incentive Com-
pensation Act’’.
SEC. 2. EXEMPTION.
Section 13(a) of the Fair Labor Standards Act of 1938
(29 U.S.C. 213(a)) is amended by striking the period at
the end of paragraph (17) and inserting a semicolon and
by adding at the end the following:
‘‘(18) any employee employed in a sales position
if—
‘‘(A) the employee has specialized or tech-
nical knowledge related to products or services
being sold;
‘‘(B) the employee’s—
‘‘(i) sales are predominantly to persons
who are entities to whom the employee’s po-
sition has made previous sales; or
‘‘(ii) position does not involve making
sales contacts;
‘‘(C) the employee’s position requires a de-
tailed understanding of the needs of those to
whom the employee is selling;
‘‘(D) the employee’s position requires the
employee to exercise discretion in offering a vari-
ety of products and services;
‘‘(E) the employee receives—
‘‘(i) base compensation, determined
without regard to the number of hours
worked by the employee, of not less than an
amount equal to one and one-half times the
minimum wage in effect under section
6(a)(1) multiplied by 2,080; and
‘‘(ii) in addition to the employee’s base
compensation, compensation based upon
each sale attributable to the employee;
‘‘(F) the employee’s aggregate compensation
based upon sales attributable to the employee is
not less than 40 percent of one and one-half
times the minimum wage multiplied by 2,080;
‘‘(G) the employee receives a rate of com-
pensation based upon each sale attributable to
the employee which is beyond sales required to
reach the compensation required by subpara-
graph (F) which rate is not less than the rate on
which the compensation required by subpara-
graph (F) is determined; and
‘‘(H) the rate of annual compensation or
base compensation for any employee who did not
work for an employer for an entire calendar year
is prorated to reflect annual compensation which
would have been earned if the employee had been
compensated at the same rate for the entire cal-
endar year.’’.
SEC. 3. CONSTRUCTION.
The amendment made by section 2 may not be con-
strued to apply to individuals who are employed as route
sales drivers.
Union Calendar No. 313
105TH CONGRESS
2D SESSION
H. R. 2888
[Report No. 105–558]
A BILL
To amend the Fair Labor Standards Act of 1938
to exempt from the minimum wage recordkeeping
and overtime compensation requirements certain
specialized employees.
JUNE 3, 1998
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed