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Pharmaceutical Sales representative - Read how the FLSA affects your paycheck

Many times, employers classify pharmaceutical sales representatives as exempt from overtime pay by labeling them as professional or administrative employees, or as outside sales employees. However, many requirements exist for employees to be properly classified as exempt employees under the FLSA.

Circuit Court Rulings
Two circuit courts have issued different rulings on this issue. One Second Circuit (CT, NY, VT) court ruling has held that pharmaceutical sales representatives are not exempt employees and are eligible for overtime pay. A Ninth Circuit (AZ, CA, ID, MT, NV, OR, and WA) court ruling has held that pharmaceutical sales representatives are exempt from overtime pay.

What the FLSA says
Pharmaceutical sales representatives are often categorized as outside sales employees. However, there are several tests that employers must prove in order for this exemption to apply.

Outside Salesperson
Outside salespeople usually have to go and find many of their sales leads. They may set up a booth at a mall or they may sell their products door to door. If your sales are made outside the office, or if you are in the field more than 50% of the time, and your money is made and primary duties are in the field, you may be considered exempt from overtime pay.

Read our article to learn more about sales classifications: Texas Sales Employees: Do you know your Sales Classification? Find Out How FLSA protections affect you.

Many employers cannot prove these exemptions, and many employees are not paid the wages they are entitled to under the federal and Texas wage laws.

 

Read our articles to learn why you may not fall under an FLSA exemption:

Managers and supervisors are not always exempt from overtime

The Computer Professional exemption does not apply to all computer professionals

Unpaid interns could be entitled to compensation for services rendered

The Executive Exemption: Learn why you may be misclassified under the labor laws

 

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