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Pharmaceutical Salespersons Not Outside Salespersons under FLSA

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By FindLaw Staff on July 06, 2010 6:40 PM

In re Novartis Wage & Hour Litig., No. 09-0437, involved an action by pharmaceutical company salespersons for overtime pay under the Fair Labor Standards Act (FLSA).  The court of appeals reversed summary judgment for defendant, on the ground that, under the Department of Labor's regulations, the salespersons were not outside salesmen or administrative employees for purposes of the FLSA.

As the court wrote:  "In these consolidated class actions, the plaintiffs, current or former pharmaceutical sales representatives employed by defendant Novartis Pharmaceuticals Corporation ("Novartis"), appeal from a judgment of the United States District Court for the Southern District of New York, Paul A. Crotty, Judge, denying their claims under the Fair Labor Standards Act of 1938 ("FLSA" or the "Act"), 29 U.S.C. section 201 et seq., and state law, for overtime pay with respect to time worked in excess of 40 hours per week."

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