Another overtime lawsuit has been decided in favor of pharmaceutical sales representatives resulting in their receiving back overtime pay. A federal judge ruled that Schering Plough pharmaceutical sales representatives are not exempt under the Fair Labor Standards Act. The lawsuit alleged that Schering Plough sales reps often worked more than 40 hours per week, but received an annual salary without overtime compensation. In finding the employees were entitled to overtime compensation, the court wrote in its opinion, that:
The closest Schering reps come to consummating sales is increasing the overall demand for its product, such that (other) Schering employees negotiate and commit to contracts with wholesalers – not the physicians to whom Schering’s products are promoted. However, while reps do not ‘consummate’ the sales themselves, neither do they design the promotional materials to be used in their sales calls, nor set the overall markets strategy for products, nor develop the ‘core message’ to be delivered during the meetings with the health care professionals.
There will be more litigation involving drug companies and their sales representatives. This group has been very important in the marketing campaigns for these companies and many are unhappy with their treatment.
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