Three Reasons Why Wage Abuses Are So Common for Sales Representatives

Galvin B. Kennedy
Galvin Kennedy is a founding partner of Kennedy Hodges. He focuses his practice to overtime and wage claims.
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Although sales representatives work hard to make the companies they work for look good to prospective and existing customers, there is sometimes a dark side to the industry. Unfortunately, many sales representatives are particularly vulnerable to wage abuses, and many end up putting in unpaid hours for their employers that they deserve to be compensated for.

Why do sales representatives have such a hard time getting paid what they are legally entitled to? It’s a question that has many facets, but here are three of the biggest reasons why wage abuses run rampant in the sales industry:

  • Unpaid overtime means bigger profits in a competitive industry. Companies are always looking for little ways to get an edge over competitors and increase profits. Unfortunately, some companies attempt to skimp on legally mandated minimum wage and overtime in an effort to save the bottom line.
  • Sales representatives often work in vulnerable or poorly paid positions for huge companies. Many inside sales representatives work in poorly paid positions for national-level employers, and many fear what might happen if they question their wages.  
  • Wage and overtime laws in the sales industry can be legitimately confusing. In sales, the environment is always changing, and employees may be asked to take on a number of roles. Because of the complicated way exemptions are determined for sales employees, even employers can make mistakes.  

Ultimately, although these are real factors that affect real people, none of these factors are real excuses for companies taking advantage of their employees. To learn more about protecting your rights as an employee, request your free copy of our book, 10 Biggest Mistakes That Can Hurt Your Wage & Overtime Claim, or contact our team directly for immediate assistance.

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