{"id":1597,"date":"2009-11-16T20:26:35","date_gmt":"2009-11-16T20:26:35","guid":{"rendered":"https:\/\/www.paymeovertime.com\/?p=203"},"modified":"2009-11-16T20:26:35","modified_gmt":"2009-11-16T20:26:35","slug":"pharmaceutical-sales-reps","status":"publish","type":"post","link":"https:\/\/www.california-labor-law-attorney.com\/pharmaceutical-sales-reps\/","title":{"rendered":"Pharmaceutical Reps are Entitled to California Overtime Pay"},"content":{"rendered":"

\"Various<\/p>\n

On July 6, 2010, the Second U.S. Circuit Court of Appeals held that sales representatives for Novartis Pharmaceuticals Corporation<\/a>  are entitled to overtime pay under the Fair Labor Standards Act (FLSA)<\/a>.  Many California employees of Novartis claimed that they were wrongfully denied overtime pay between March 23, 2000 and April 7, 2007. The representatives, who worked nine-hour days, made routine calls and visits to physicians inquiring as to whether they would prescribe the company\u2019s products to patients. Under the FLSA, employees must be paid overtime for more than 40 hours worked per week, but there are exemptions for\u201coutside\u201d salespersons<\/a>  and \u201cadministrative\u201d personnel.<\/a><\/p>\n

The Court ruled that neither exemption applies to pharmaceutical reps because<\/p>\n

(1) representatives only promote a product and do not make \u201csales\u201d
\n(2) their activities are so tightly controlled by the company that they are not allowed to exercise independent judgment.<\/p>\n

According to Secretary of Labor Hilda L. Solis<\/a>,  an employee who can merely promote a drug and provide samples, has not in fact made a \u201csale.\u201d Judge Kearse<\/a>  agreed, stating that an employee who cannot \u201ceven obtain from the physician a binding agreement to prescribe it\u201d has not made a sale.  <\/a>
\nNovartis contended that its representatives are exempt from overtime under the \u201cadministrative\u201d exemption, because they are free to determine when they will visit a particular doctor and how best to earn their support, whether it be dinner, a sporting event, or some other activity. The Court rejected this argument because<\/a> it failed to establish a freedom of discretion. It particularly noted that Novartis representatives have no control over the company\u2019s marketing strategy. Furthermore, the company determines the physicians to be visited, the drugs to be recommended, and the promotional events to be held.<\/p>\n

The ruling in this case is important because it is the first federal appellate decision addressing the outside sales and administrative exemptions as it applies to the pharmaceutical industry<\/a>.
\nIt also underlines the main purpose of California overtime law<\/a>, which is to evenly divide work among employees.
\nIf you are a pharmaceutical representative and have questions regarding your entitlement to California overtime pay, take action and call a knowledgeable <\/a>California labor law attorney.<\/a><\/p>\n

\n

Photo Credit: Shutterstock\/ Adul10<\/p>\n","protected":false},"excerpt":{"rendered":"

On July 6, 2010, the Second U.S. Circuit Court of Appeals held that sales representatives for Novartis Pharmaceuticals Corporation  are entitled […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[52],"tags":[],"class_list":["post-1597","post","type-post","status-publish","format-standard","hentry","category-overtime"],"acf":[],"yoast_head":"\nPharmaceutical Sales Rep May be Entitled to Overtime Pay in California<\/title>\n<meta name=\"description\" content=\"Pharmaceutical Sales Reps may not be exempt from overtime. 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