Exempt Employees

The Fair Labor Standards Act of 1938, 29 U.S.C. §201, requires that employees be paid overtime for more than 40 hours worked per week but it sets out an exemption for "outside" salespeople and "administrative" employees. 2nd Circuit Finds Novartis Drug Reps Not Exempt From Overtime Law The panel vacated a lower court's ruling in the consolidated actions of In re Novartis Wage and Hour Litigation, 09-0437-cv (593 F.Supp.2d 637).


Judge Kearse said the secretary of labor's regulations "define and delimit the terms used in the statute" and the "secretary's interpretations are entitled to 'controlling' deference."

"The position taken by the Secretary on this appeal is that when an employee promotes to a physician a pharmaceutical that may thereafter be purchased by a patient from a pharmacy if the physician -- who cannot lawfully give a binding commitment to do so -- prescribes it, the employee does not in any sense make a sale," Kearse said. "Thus, the interpretation of the regulations given by the secretary is entirely consistent with the regulations."

http://www.nylj.com/nylawyer/adgifs/decisions/070710kearse.pdf