Civilian Military Recruiters Did Not Fall Under FLSA's "Outside Salesman" Exemption
The United States Army contracted with Serco, Inc. to provide recruiting services to the Army and the Army Reserves. Under the Army-Serco contract, Serco was paid every time its recruiting efforts resulted in one of the following: (1) a recruit with no prior military experience enlisted in the U.S. Army or the U .S. Army Reserves; (2) a member of the U.S. Army Reserves transferred to the U.S. Army; (3) a former member of the military enlisted in the U.S. Army or U.S. Army Reserves; or (4) an applicant shipped to his or her assigned training center.
In this case, two civilian recruiters brought suit against Serco, alleging that they were entitled to overtime compensation under the Fair Labor Standards Act (FLSA). Serco defended on the ground that the recruiters fell within the FLSA’s exemption for “outside salesmen.” The U.S. District Court granted summary judgment for the recruiters.
On appeal, the 10th Circuit affirmed, concluding that because Serco's employees did not obtain commitments from recruits, they were not engaged in sales and, therefore, did fall under the FLSA's “outside salesmen” exemption.
Clements v. Serco Inc.
The 10th Circuit Court of Appeals’ jurisdiction includes Colorado, Kansas, New Mexico, Oklahoma, Utah and Wyoming.