Doug Bereuter: “This Member rises today, as a co-sponsor in support of H.R. 2888, ``The Sales Incentive Compensation Act.'' This bill…”

“This Member rises today, as a co-sponsor in support of H.R. 2888, ``The Sales Incentive Compensation Act.'' This bill would amend the 1938 Fair Labor Standards Act by providing an exemption from overtime and minimum wage laws for certain types of employees. These employees are defined in this bill as those who work within or inside an employer's establishment and are engaged in selling to non-retail customers by using forms of electronic commerce such as the telephone, fax, and/or the computer. Under the current Fair Labor and Standards Act, there is a provision which allows an exemption from the overtime and minimum wage requirements for certain retail sales' employees. This exemption does not currently apply to wholesale establishments. The original intent behind this distinctive treatment between wholesalers and retailers was due to the nature of the retail field. In 1938, when the Fair Labor Standards Act was passed, retail business consisted of employees involved in sales outside the place of business. Employees involved in sales physically went to the consumer for a transaction. Since 1938, American society and the world for that matter have undergone a technological transformation. Various forms of electronic communication have altered the manner in which business is conducted. Whether it is faxes, telemarketing, E-mail or other types of electronic commerce, a bulk of sales transactions are now performed from the office.”