7th Circ. Says Admin OT Exemption Covers Pharma Sales Reps

Law360, New York (May 9, 2012, 6:15 PM EDT) -- The Seventh Circuit ruled Tuesday that Eli Lilly & Co. and Abbott Laboratories' sales representatives are overtime-exempt administrative employees, which experts say could give the drug industry a lifeline if the U.S. Supreme Court does not find pharmaceutical sales reps to be outside salespeople.

The pharmaceutical industry has long considered its sales reps — who are legally prohibited from closing sales — exempt from the Fair Labor Standards Act's overtime requirements, but in recent years a slew of class actions have challenged the industry's classification and...
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