Court Rulings Impact FLSA Exempt Status of Pharmaceutical and Medical Technology Sales Representatives

Mondaq Business BriefingUnited States Law Articles in English (2010)

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Court Rulings Impact FLSA Exempt Status of Pharmaceutical and Medical Technology Sales Representatives

On July 6, 2010, the United States Court of Appeals for the Second Circuit decided In re Novartis Wage & Hour Litigation, No. 09-0437-cv, 2010 U.S. App. LEXIS 13708 (2d Cir. July 6, 2010), holding that Novartis pharmaceutical sales representatives are not exempt from the requirements of the Fair Labor Standards Act (FLSA).

This opinion marks the first significant circuit court decision addressing an issue that has produced conflicting results among federal courts. In holding that the Novartis pharmaceutical sales representatives are non-exempt employees, the Second Circuit found that they...

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