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Are Pharma Sales Reps Exempt From Overtime Pay?

February 13, 2012

"Are pharmaceutical sales representatives covered by the “outside sales” exemption under the federal Fair Labor Standards Act? For decades the pharmaceutical industry has been left without any clear guidance in answering this question. The wider implication, of course, is that, without any guidance, pharmaceutical companies have been left to determine on their own whether thousands of “sales reps” across the country are entitled to overtime compensation. Finally — now that the legal landscape relative to this issue has reached maximum levels of confusion as the Ninth and Second Circuits recently took diametrically opposed positions — the Supreme Court has agreed to review the issue and provide the industry with some clarity and certainty. Well, sort of..."

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