The 9th Circuit U.S. Court of Appeals has asked the California Supreme Court to rule on whether pharmaceutical sales representatives are exempt under the California Labor Code. Traditionally, they have been classified as exempt.
The California Labor Code generally exempts outside salespersons from state overtime requirements. However, since pharmaceutical sales reps do not sell prescription drugs, but merely recommend that doctors prescribe them, it’s unclear whether they fall under the exemption.
There are currently three overtime class-action lawsuits appeals pending before the 9th Circuit. Sales representatives have filed four more in federal courts in California, and one has been filed in New York under California law.
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