Legislative Chair, Jonathan Meyers gave the chapter a short legal update at the meeting last night.
One thought on “Legal Update”
This month’s update dealt with In re Novartis Wage and Hour Litigation, No. 09-0437. The US Supreme Court, recently refused to hear the case, on appeal from the Second Circuit Court of Appeals. The Second Circuit (which encompasses states including New York), held that pharma sales reps (who go to doctors offices, buy lunch for everyone, and give out free fancy pens), are not exempt from overtime under the FLSA. Even though the pharma industry has viewed them, and treated them, as exempt under the outside salesperson and adminsitrative exemptions, they are wrong — at least in the Second Circuit. Other Circuits, such as the Third (encompassing New Jersey) and the Ninth (encompassing California), hold that such sales reps ARE exempt.
Many employers (particularly in big pharma), were hoping the US Supreme Court would resolve the conflict between the Circuits. It has refused to. Therefore, now,big phrama (and perhaps other) employers will need to treat certain “sales” people diffrerently in Long Island, than they do in Jersey City.
Legislative Chair, Jonathan Meyers gave the chapter a short legal update at the meeting last night.
This month’s update dealt with In re Novartis Wage and Hour Litigation, No. 09-0437. The US Supreme Court, recently refused to hear the case, on appeal from the Second Circuit Court of Appeals. The Second Circuit (which encompasses states including New York), held that pharma sales reps (who go to doctors offices, buy lunch for everyone, and give out free fancy pens), are not exempt from overtime under the FLSA. Even though the pharma industry has viewed them, and treated them, as exempt under the outside salesperson and adminsitrative exemptions, they are wrong — at least in the Second Circuit. Other Circuits, such as the Third (encompassing New Jersey) and the Ninth (encompassing California), hold that such sales reps ARE exempt.
Many employers (particularly in big pharma), were hoping the US Supreme Court would resolve the conflict between the Circuits. It has refused to. Therefore, now,big phrama (and perhaps other) employers will need to treat certain “sales” people diffrerently in Long Island, than they do in Jersey City.