Merck Sales Rep New York Overtime

A lawsuit, filed on behalf of New York Merck sales representatives alleging they were misclassified as exempt from New York overtime, has been decided in favor of the New York Merck pharmaceutical sales representatives. The pharmaceutical representative lawsuit alleged plaintiffs should have been paid overtime for their work as Merck pharmaceutical sales representatives. The New York overtime lawsuit resulted in the court finding that New York Merck sales representatives should have been paid for overtime wages.

Under New York overtime laws, employees are entitled to one-and-one-half times the regular rate of pay for all hours worked that are in excess of eight hours in a workday. Furthermore, under both New York overtime laws and the Fair Labor Standards Act (FLSA), employees are entitled to overtime pay for working more than 40 hours in a workweek.

Under the Fair Labor Standards Act (FLSA), people who are involved in outside sales are usually deemed exempt from overtime pay. This is because people involved in outside sales have unlimited earning potential due to their commissions—the more they sell, the more money they can make.

For a long time, pharmaceutical sales representatives were considered exempt from overtime pay. They could be considered exempt on one of two counts: either as outside sales people or under the administrative exemption, if they have discretion and authority in their job.

Some recent lawsuits, however, have resulted in the courts determining that pharmaceutical sales reps are not exempt from overtime pay—that is, they should be paid overtime for their hours worked—because they do not fall under either the outside sales exemption or the administrative exemption.

A lawsuit filed against Schering-Plough (which was transferred to Merck, who acquired Schering-Plough in 2009), alleges that sales representatives should be paid overtime because they do not meet the requirements for overtime exemption. According to the complaint, the primary duties of Merck representatives are to, "promote defendant's pharmaceutical healthcare products in accordance with defendant's established specific procedures and protocols which govern and control every aspect of the work performed by the Sales Representatives."

Merck lost the lawsuit and appealed to the US Supreme Court. The Supreme Court has refused to hear the drug-company's appeal, leaving the New York federal appeals court ruling—that Merck must pay its sales representatives overtime wages—in tact.

Merck Sales Rep New York Overtime Legal Help

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Last updated on Apr-3-11