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GlaxoSmithKline Sales Rep New York Overtime
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GlaxoSmithKline sales representatives who work in New York may have been misclassified as exempt from New York overtime. 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 New York pharmaceutical sales representatives have been filed, alleging pharmaceutical companies violated overtime laws by misclassifying New York sales reps as exempt from overtime.
Under the Fair Labor Standards Act (FLSA), employees are entitled to overtime pay for working more than 40 hours in a workweek. However, employees who are involved in outside sales are typically considered exempt from overtime pay. That is because people involved in outside sales have unlimited earning potential due to their commissions—the more they sell, the more they can make.
New York Overtime and GlaxoSmithKline Sales Representatives
For a long time, pharmaceutical sales representatives were considered exempt from overtime pay. They could be considered exempt on one of two counts: either as outside sales people or under the administrative exemption, if they have discretion and authority in their job.
New York 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.
A lawsuit filed against GlaxoSmithKline alleged that GlaxoSmithKline sales representatives should be paid overtime because they do not meet the requirements for overtime exemption. The Ninth Circuit Court of Appeals (covering western states) found that GSK sales representatives are not entitled to overtime because they are defined as "salesmen," filling the requirement for outside sales exemption.
New York 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. Although Novartis appealed that decision to the US Supreme Court, the Supreme Court has refused to hear the appeal, keeping the lower court's decision in favor of the sales representatives in tact.
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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