Law, Business and Society 11th Edition by Tony McAdams

Exercise 37

Hershey Company Retail Sales Representatives (RSRs) were classified as exempt under the Fair Labor Standards Act (FLSA), and Hershey never paid hourly compensation to RSRs for any overtime they worked. While the RSRs received bonuses based on performance, they were not eligible to receive sales commissions. RSRs are part of teams that help sell Hershey products to retail outlets of various sizes from Walmart to independently owned shops. In a wage and hour claim seeking overtime compensation, RSRs contended that they are primarily responsible for merchandising tasks such as delivering and setting up product displays, tagging products, and stocking shelves. Hershey defended that RSRs' job duties include selling products directly to retailers, meeting with their key decision makers to increase sales, and only occasionally assisting with merchandising at their stores. Are the RSRs nonexempt employees with rights to overtime compensation under FLSA Decide. Explain. See Campanelli v. Hershey Co., 2011 U.S. Dist. LEXIS 17483 (N.D. Cal. 2011).