GlaxoSmithKline Sales Rep California Overtime
A lawsuit was filed on behalf of GlaxoSmithKline sales reps alleging they were misclassified as exempt from California overtime and should have been paid overtime for their work as California GlaxoSmithKline sales representatives. Although the California GlaxoSmithKline sales representatives lawsuit resulted in a verdict for the defendant, other similar lawsuits filed against different companies have resulted in victories for the pharmaceutical sales representatives. Lawsuits involving California pharmaceutical sales representatives have been filed, alleging pharmaceutical companies violated California overtime law by misclassifying California sales reps as exempt from overtime.
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California Overtime and GlaxoSmithKline Sales Representatives
California GlaxoSmithKline Pharmaceutical Sales and the Fair Labor Standards Act
California GlaxoSmithKline Sales Overtime Pay
Some recent lawsuits, however, have resulted in the courts determining that some pharmaceutical sales reps are not exempt from overtime pay—that is, they should be paid overtime for their hours worked—because they do not fall under either the outside sales exemption or the administrative exemption.
California GlaxoSmithKline Sales Representative Overtime Lawsuit
This finding contradicts the Second Circuit Court of Appeals, which found in the Novartis sales representative lawsuit that Novartis sales representatives should be eligible for overtime pay because their job is not directly involved in sales.
The judges in the GlaxoSmithKline sales representative lawsuit found that some salespeople earned compensation that made up to 41 percent of their gross income, making them ineligible for overtime pay. Outside sales people are considered exempt from overtime because commissions and incentives mean their earning potential is virtually unlimited.
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