Re Novartis Wage and Hour Litigation
On July 6, 2010, the Second Circuit Court ruled that Novartis Pharmaceuticals Corporation’s pharmaceutical sales representatives did not meet the requirements of the administrative or outside sales exemptions under the Fair Labor Standards Act. Therefore, they were incorrectly classified as exempt employees. The Second Circuit also reversed a decision by the district court for the Southern district of New York and reached a conclusion contrary to that reached by the Third Circuit in the recent Smith v. Johnson &Johnson case.
This story was posted by the Wage and Hour Practice Group on July 12, 2010. Some of the Supporting Facts that led the Second Circuit to this decision for outside sales employees are below:
This information was taken from the Wage and Hour Counsel website. To read more about this case and learn more about the Outside Sales exemption as well as the Administrative exemption, please click on the link below.