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Pharmaceutical Sales Representatives Not Entitled to Overtime Pay Under FLSA’s Administrative Exemption

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In the first of two overtime cases decided in New Jersey in July, the federal district court determined that several former pharmaceutical sales representatives are “administrative” employees and thus exempt from the overtime pay requirements of the Fair Labor Standards Act (FLSA).

Jackson v. Alpharma, Inc., 2010 WL 2869530 (D.N.J., July 19, 2010) – In the first of two overtime cases decided in New Jersey in July, the federal district court determined that several former pharmaceutical sales representatives are “administrative” employees and thus exempt from the overtime pay requirements of the Fair Labor Standards Act (FLSA). The court held that the representatives perform non-manual work directly related to the general business operations of the employer (preparing business plans, detecting trends in the industry, and generating sales ideas) and exercise discretion and independent judgment on significant matters (marketing and promoting the products in a specific geographic area for which each is solely responsible.) The Jackson case adds to the split of authority on this issue around the country.

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Employment Law , Wage and Hour

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