Recent rulings on the overtime status of pharmaceutical sales representatives will provide guidance not just in cases involving pharmaceutical sales representatives but for anyone seeking clarification of the administrative exemption, Ellen Boshkoff of Faegre Baker Daniels told Indiana Lawyer in "Federal Courts Rule Against Overtime in Pharmaceutical Cases."
After groups of pharmaceutical sales representatives brought suits against their employers, claiming they were entitled to overtime pay, the 7th Circuit Court of Appeals reviewed the administrative exemption in Susan Schaefer-LaRose v. Eli Lilly & Co. and the Supreme Court considered the outside sales exemption in Christopher, et al. v. SmithKline Beecham Corp. Both courts ruled that pharmaceutical sales representatives are not entitled to overtime pay because they meet overtime exemption requirements outlined in the Fair Labor Standards Act.
Boshkoff, who served as lead counsel for Eli Lilly in the 7th Circuit, told Indiana Lawyer that this was an important case that people will use when applying the administrative exemption to employees in such positions as human resources, marketing, accounting and procurement.