Pharmaceutical Sales Reps Entitled To Overtime Compensation

In a victory for workers, the U.S. Supreme Court let stand a 2d Circuit decision stating that pharmaceutical sales reps are entitled to overtime pay.

In Novartis, the 2d Circuit court determined that pharmaceutical sales reps are not “outside sales” people and are covered by federal wage and hour laws, entitling them to overtime pay.

The court’s reason? Pharmaceutical reps do not actually make sales – they promote drugs to doctors who they hope will then prescribe these drugs. The 2d Circuit also determined that the reps don’t fit into other categories of exemptions – such as administrative – because they do not exercise any of their own decision-making authority or independent judgment in promoting the drug sales.

The Supreme Court declined requests by Novartis to review this decision.

How you are classified at work – as an outside sales person, independent contractor or employee – has a significant impact on how you are paid and if you are entitled to receive overtime compensation. Determining the answer may be complex. If you have any questions, or believe you have not received all the pay you deserve, please contact the experienced Atlanta employee’s rights attorneys Buckley Bala Wilson Mew LLP. We have years of experience helping workers obtain all the pay they are entitled to.