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Pharmaceutical sales representative is exempt from overtime under the Fair Labor Standards Act pursuant to the administrative employee exemption.

April 1, 2010
Smith v. Johnson and Johnson, 2010 U.S. App. LEXIS 2643 (3d. Cir. Feb. 9, 2010)

The plaintiff filed a lawsuit seeking to certify a collective action pursuant to the Fair Labor Standards Act as a result of her employer's failure to compensate pharmaceutical sales representatives for overtime worked. The lower court dismissed the plaintiff's lawsuit, ruling that the plaintiff was not entitled to overtime under the Fair Labor Standards Act. In affirming the decision, the Third Circuit expressly held that the plaintiff was exempt from overtime pursuant to the FLSA's "administrative employee exemption." In so holding, the court reasoned that the plaintiff expressly (1) elaborated at her deposition on the independent and managerial qualities that her position required, including formulating a strategic plan designed to maximize sales in her territory, (2) executed nearly all of her duties without direct oversight and (3) admitted that she described herself as the manager of her own business who could run her own territory as she saw fit. The Third Court, however, failed to address the employer's cross-appeal, which argued that the plaintiff was additionally exempt pursuant to the "outside salesman exemption."

Case Law Alert - 2nd Qtr 2010

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Lee C. Durivage
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