Employer, Beware: Outside Sales Reps May Require OT

Law360, New York (August 3, 2010, 12:56 PM EDT) -- In an important decision that could force companies to alter the way they utilize and compensate their outsides sales representatives, the U.S. Court of Appeals for the Second Circuit ruled earlier this month that Novartis Pharmaceuticals Corp.’s outside sales representatives are entitled to receive overtime payments if they work more than 40 hours in a workweek.

Novartis treated their outside sales representatives as exempt from federal and state overtime requirements because, in Novartis’ view, the representatives satisfy the “outside sales” and “administrative” exemptions to the overtime...
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