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HRCI Exam PHR Topic 4 Question 95 Discussion

Actual exam question for HRCI's PHR exam
Question #: 95
Topic #: 4
[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.


Contribute your Thoughts:

Chandra
3 months ago
This question is making me thirsty. Anyone else up for a sales commission-fueled margarita break?
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Earlean
3 months ago
C) Randy must be customarily engaged away from the employer's place of business. Bingo! That's the key requirement. I guess Randy will be exempt as long as he's not chained to his desk all day.
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Sheridan
2 months ago
Jim: Bingo! That's the key requirement. I guess Randy will be exempt as long as he's not chained to his desk all day.
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Deeanna
2 months ago
Pauline: Randy must be customarily engaged away from the employer's place of business.
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Penney
3 months ago
Jim: So, what's the other consideration for Randy to be considered exempt as an outside salesperson?
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Chandra
3 months ago
I agree with Luisa. Being customarily engaged away from the employer's place of business is a key factor in determining if someone is exempt as an outside salesperson.
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Luisa
3 months ago
I think option C makes sense because if Randy is working outside the employer's place of business, it shows he is truly an outside salesperson.
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Elmer
3 months ago
B) Randy must not have a contract to complete sales. What? That's completely wrong. Outside salespeople definitely have contracts to make sales, that's kind of their whole job.
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Yolando
2 months ago
C) Randy must be customarily engaged away from the employer's place of business.
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Britt
2 months ago
A) Randy must earn all income from commission.
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Ming
3 months ago
The other consideration is that Randy must be customarily engaged away from the employer's place of business.
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Eun
3 months ago
D) Randy must earn more than $48,234 per year. Wow, that's a pretty high threshold! I wonder how many outside salespeople actually clear that bar.
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Minna
2 months ago
Jim: That makes sense. Thanks for clarifying, Pauline.
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Xochitl
2 months ago
Pauline: That's right. It's one of the key factors in determining exempt status for outside salespeople.
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Floyd
2 months ago
Jim: Oh, I see. So Randy needs to be out in the field most of the time.
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Benton
3 months ago
Pauline: Randy must be customarily engaged away from the employer's place of business.
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Misty
3 months ago
Pauline: Randy must be customarily engaged away from the employer's place of business.
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Raymon
4 months ago
What is the other consideration for Randy to be considered exempt?
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Hui
4 months ago
C) Randy must be customarily engaged away from the employer's place of business. Makes sense to me, that's the classic definition of an outside salesperson.
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Rosalind
2 months ago
C) Randy must be customarily engaged away from the employer's place of business.
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Mickie
3 months ago
B) Randy must not have a contract to complete sales.
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Charlie
3 months ago
A) Randy must earn all income from commission.
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