HRCI PHR Exam - 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?

ARandy must earn all income from commission.

BRandy must not have a contract to complete sales.

CRandy must be customarily engaged away from the employer's place of business.

DRandy must earn more than $48,234 per year.

Show Suggested Answer

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.

by Lucy at May 06, 2022, 12:12 AM

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Cordelia

4 months ago

Nope, it’s about the primary duty and being away from the office!

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Francis

4 months ago

I thought he had to earn a certain amount too, like over $48k?

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Sabra

4 months ago

Wait, is it really just those two things? Seems too simple.

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Martha

4 months ago

Totally agree, that’s how it works for outside sales!

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Sue

5 months ago

The other qualifier is that Randy must be customarily engaged away from the employer's place of business.

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Stephanie

5 months ago

I’m pretty confident that the requirement is about being customarily engaged away from the employer's place of business. That seems to fit with outside sales roles.

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Janet

5 months ago

I think the second qualifier is related to where Randy works most of the time. It might be about being away from the employer's place of business.

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Reynalda

5 months ago

I remember studying the criteria for exempt employees, but I’m not entirely sure about the specifics for outside sales.

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Kristal

5 months ago

I feel like I’ve seen a question like this before, and I think it was about earning a certain salary threshold. But I can't recall the exact figure.

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Malcom

5 months ago

Okay, I think I've got this. The key is to implement better tracking and organization of the backup data, so the right data gets restored to the right servers. Maintaining a printed tape backup report seems like the best option here.

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Penney

5 months ago

This question seems straightforward. The key is to identify the steps that are unique to the business process and consider them for encapsulation by task service candidates.

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Richelle

5 months ago

Didn't we have a practice question on this? I feel like enterprise-centric might also be relevant, but I'm confused if it's the main point.

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Ruby

5 months ago

Okay, let me think this through. The factory rent, insurance, and supervisor wages seem like they would be considered indirect costs since they're not directly tied to the chocolate production process. The purchases of milk and cocoa are probably direct costs. I'll go with A, B, and C.

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