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Second Circuit issues ruling in In re Novartis Wage and Hour Litigation

Second Circuit issues ruling in In re Novartis Wage and Hour Litigation: Are pharmaceutical sales reps entitled to overtime pay under the Fair Labor Standards Act if they work more than 40 hours per week? That's the question that a three-judge panel of the U.S. Court of Appeals for the Second Circuit decided today.

The U.S. District Court for the Southern District of New York had ruled in favor of Novartis, holding that drug company sales reps are not entitled to overtime pay due to FLSA exemptions for "outside salesmen" and "administrative employees."

Today's Second Circuit ruling disagrees, thereby reinstating the sales reps' claims for overtime pay. Among other things, the Second Circuit notes that pharmaceutical sales reps don't actually sell anything to anyone.

In coverage of today's ruling, Bloomberg News reports that "Novartis AG's Salespeople Covered by Wage Laws, U.S. Appeals Court Rules."

Full post as published by How Appealing on July 06, 2010 (boomark / email).