We are a Florida based ISV with 35 total employees. Our sales people are mostly all inside reps, although we break them up into account managers and new business. We had everyone on an annual salary but based on feedback from a couple of payroll companies we transitioned everyone to an hourly plan. Our comp plans are base:incentive 60:40.

With the new hourly plan we require everyone to punch-in and out. We try to minimize overtime. Still, there is a certain amount that is unavoidable. One argument being made is that given our base salaries, sales people should not need to ever attain overtime pay.

This mentality manifest itself into a two-edged sword. In the past we paid a salary and you worked whatever hours you needed to get the job done and have the prize of that incentive. How do other similar companies deal with this issue of hourly vs salary for sales personnel when it comes to overtime pay?