Department of Labor States Drug Reps are Entitled to Overtime

Zev Antell

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The issue of whether Pharmaceutical Sales Representatives ("Drug Reps" as they are sometimes called) are entitled to overtime has been bouncing around and dividing the Federal Courts for several years. However, just yesterday the United States Department of Labor ("DOL") came out and affirmatively stated that Drug Reps are entitled to overtime compensation. In a current suit against drugmaker Novartis, the DOL issued an Amicus, or Friend of Court, brief stating that Drug Reps are non-exempt under the FLSA's Outside Sales Exemption and its Administrative Exemption. This a huge victory for Drug Reps seeking overtime compensation because the Federal Courts often defer to the DOL for proper interpretation of the FLSA. This means that Drug Reps who have previously been denied overtime could be entitled to millions of dollars in unpaid overtime compensation. In fact, it is not a stretch to think that other types of medical products representative may be entitled to overtime as well, provided they do no actual selling.