Despite the Circuit split created by this month’s decision from the Ninth Circuit, holding that pharmaceutical sales representatives are outside sales employees within the meaning of the FLSA, the Supreme Court has declined to take up Novartis’ appeal of the adverse ruling it received on this issue from the Second Circuit. The Supreme
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Supreme Court Declines Request to Consider Whether Half Time Calculation Is Appropriate Method To Calculate Overtime Due To Misclassified Employees
As previously discussed here and here, several Circuit courts have recently upheld use of the “half time” calculation of damages in FLSA misclassification cases. Urnikis-Negro v. Am. Family Prop. Servs., — F.3d. —, No. 08-3117, 2010 U.S. App. LEXIS 16126 (7th Cir. 2010); Desmond v. PNGI Charles Town Gaming, L.L.C., 2011 U.S. App. LEXIS…
Ninth Circuit: Pharmaceutical Sales Representatives Are Exempt Outside Salespersons
On February 14, 2010, the United States Court of Appeals for the Ninth Circuit held GlaxoSmithKline’s pharmaceutical sales representatives (“PSRs”) are exempt from the FLSA’s minimum wage and overtime requirements under the outside sales exemption, rejecting a contrary decision from the Second Circuit, and an amicus brief filed by the United States Department of Labor. Christopher …
Fourth Circuit Joins Four Prior Circuits in Ratifying Half Time Calculation of Overtime Damages Due Misclassified Exempt Employee
It is well understood that employees misclassified as exempt under the FLSA are entitled to overtime pay for hours worked in excess of forty in a week. However, while the United States Department of Labor takes the position that any unpaid overtime is calculated using the “half-time” method, not all of the Circuit Courts have confirmed…
Lacking Circuit Court Guidance, District Court Adheres To Earlier Ruling That Pharmaceutical Sales Representatives Are Exempt Outside Salespersons
In the latest installment of the ongoing litigation over whether pharmaceutical sales representatives are exempt from overtime under the FLSA (see earlier post here), a district court in Indiana declined to reconsider its decision holding that PSRs do qualify for the outside sales exemption. See Schaefer-Larose v. Eli Lilly & Co., S..D.
Will Supreme Court Elect to Resolve Scope of Outside Sales and Administrative Exemptions?
In a much-awaited decision, earlier this week the U.S. Court of Appeals for the Second Circuit reversed a New York District Court and held that pharmaceutical sales representatives are not exempt outside sales or administrative employees. In re Novartis Wage & Hour Litig., No. 09-0437-cv, 2010 U.S. App. LEXIS 13708 (2d Cir. July 6…
Supreme Court Declines to Review Second Circuit’s Narrow Interpretation of Administrative Exemption
The FLSA’s administrative exemption requires the party claiming exemption to establish that the employee was engaged in “administrative” work, as opposed to “production” work (the so-called administrative/production dichotomy). Determining whether an employee meets the administrative exemption can be challenging. This determination is even more difficult in white-collar industries, where unlike in manufacturing, it is not …
Supreme Court Reinforces Its Shady Grove Ruling Limiting Application Of State Procedural Waiver Requirements In Federal Court Actions
On the heels of its ruling in Shady Grove regarding the inapplicability of state procedural rules in federal court (discussed here), on April 19, 2010, the Supreme Court issued a decision reviving another dismissed class action. In Holster v. Gatco Inc., Case Number 08-1307, the Court granted the appeal petition of an individual…
Supreme Court Expands Relief Available in New York State Law Class Actions Filed In Federal Court
The Supreme Court dealt a blow to New York wage-and-hour defendants sued in federal court last week, overruling established precedent requiring plaintiffs bringing New York Labor Law (“Labor Law”) class actions in federal court to waive the 25% liquidated damages “penalty” in order to proceed on a class basis. In Shady Grove Orthopedic Assocs., P.A. …
Supreme Court To Decide Whether Internal Verbal Complaints About Alleged Unpaid Wages Constitute Protected Activity Exposing Employers To Retaliation Claims
The Supreme Court, on March 22, 2010, agreed to answer a question that has divided the circuit courts of appeal—whether the FLSA retaliation provision protects verbal complaints made by employees or only written ones. The Court will review the Seventh Circuit’s decision in Kasten v. Saint-Gobain Performance Plastics Corp., 570 F.3d 834 (7th Cir. 2009)…