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Saturday, August 21, 2010

Second Circuit Rules that Pharmaceutical Sales Reps -- Some Making $100,000 a Year with Commissions -- Entitled to Overtime

On July 6, 2010, the United States Court of Appeals for the Second Circuit found that current and former sales representatives of a pharmaceutical company were neither exempt outside sales people nor exempt administrative employees.

The Court found that the salespeople were promoting sales of other, not making sales themselves. Thus, these employees primary duty was not making sales away from the employer’s place of business.

The Court also found that the sales representatives only performed low level marketing functions. Even though they had some authority to enter into agreements which bound company and had some discretion, the Court found the employees’ duties were not sufficient to make them exempt administrative employees under the FLSA.

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