Pharmaceutical sales representatives qualify for administrative exemption
The 7th U.S. Circuit Court of Appeals in Chicago recently tried two cases in which pharmaceutical companies were classifying sales representatives as exempt employees and ruled in favor of the employer. The court found the job duties of the employees to be within the provisions of the Fair Labor Standards Act (FLSA) administrative exemption.
Under the FLSA, employers are required to pay employees time-and-a-half for any hours worked beyond 40 in a standard workweek. However, workers who qualify for an exemption as an administrative, professional, executive, outside sales or computer specialist employee are not owed overtime pay for extra hours worked.
“Work done by the pharmaceutical sales representative properly is characterized as administrative," the court found, as reported by Workforce. "To the maximum extent possible, their work is based on maintaining continuous and regular contact with the physicians to whom they are assigned, anticipating their objections and concerns and addressing them on behalf of their employers."
There is another case regarding pharmaceutical sales representatives that is now before the Supreme Court, the source reports. The employees in that case were filed under outside sales exemptions. It has not yet been determined whether their job duties fall under the FLSA's measures.
Employers in the pharmaceutical field as well as other industries that employ salaried workers might consider using a professional payroll processing service or outsourcing human resources to relieve their liability and ensure FLSA compliance.
Under the FLSA, employers are required to pay employees time-and-a-half for any hours worked beyond 40 in a standard workweek. However, workers who qualify for an exemption as an administrative, professional, executive, outside sales or computer specialist employee are not owed overtime pay for extra hours worked.
“Work done by the pharmaceutical sales representative properly is characterized as administrative," the court found, as reported by Workforce. "To the maximum extent possible, their work is based on maintaining continuous and regular contact with the physicians to whom they are assigned, anticipating their objections and concerns and addressing them on behalf of their employers."
There is another case regarding pharmaceutical sales representatives that is now before the Supreme Court, the source reports. The employees in that case were filed under outside sales exemptions. It has not yet been determined whether their job duties fall under the FLSA's measures.
Employers in the pharmaceutical field as well as other industries that employ salaried workers might consider using a professional payroll processing service or outsourcing human resources to relieve their liability and ensure FLSA compliance.
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