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HRCI Exam PHR Topic 5 Question 17 Discussion

Actual exam question for HRCI's PHR exam
Question #: 17
Topic #: 5
[All PHR Questions]

Pauline is a HR Professional for her organization and she's meeting with the sales manager Jim. Jim wants to know if Randy, one of his sales people, is considered exempt or not because he's doing outside sales. Pauline tells Jim that there are just two qualifiers for Randy to be considered exempt in his role as an outside salesperson. The first is that Randy's primary duty must be making sales. What is the other consideration?

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Suggested Answer: C

Randy must primarily do sales outside of the employer's place of business to be considered an exempt employee.

Answer option D is incorrect. The amount Randy earns doesn't directly affect his role as an exempt sales person.

Answer option A is incorrect. Randy doesn't have to earn all of his income from commission.

Answer option B is incorrect. Randy doesn't need a contract to do sales.


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