Merck Sales Rep Illinois Overtime

Illinois Merck sales representatives may be eligible for overtime pay after a lawsuit, alleging Merck sales representatives in New York were misclassified as exempt from overtime, was decided in favor of the Merck pharmaceutical sales representatives. The pharmaceutical representative lawsuit alleged plaintiffs should have been paid overtime for their work as Merck pharmaceutical sales representatives. The overtime lawsuit may have ramifications for Illinois Merck pharmaceutical sales representatives.

Under the Fair Labor Standards Act (FLSA), people who are involved in outside sales are usually deemed exempt from overtime pay, which is calculated at a rate of one-and-one-half the regular wages for hours worked above eight in a day or 40 in a week. 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.

A lawsuit was filed in Illinois against Abbott Laboratories, Inc., alleging that Abbott's pharmaceutical sales representatives should have been paid overtime for hours worked over 40 in a week. Abbott Laboratories defended itself, saying that its pharmaceutical sales representatives qualified for both the administrative exemption and the outside sales exemptions. The US District Court for the Northern District of Illinois disagreed with Abbott, finding that the sales rep's activities did not result in a sale or order and that they did not exercise sufficient discretion and independent judgment in their jobs.

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. That ruling may have an impact on Illinois Merck pharmaceutical sales representatives.

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Last updated on May-10-11