Pharma Reps $99 million Overtime Settlement
A federal judge has granted preliminary approval to a $99,000,000 settlement that will resolve the overtime pay claims of almost 8,000 current and former sales representatives who were not paid overtime, even though they worked more than 40 hours per week.
The settlement comes in advance of likely consideration of the issue of pharma rep overtime pay by the U.S. Supreme Court. There has been a split between lower courts that have ruled on the issue. This settlement eliminates the risk to both sides, and guarantees that the workers will see some compensation as a result of the case. If the Supreme Court determines that the reps are covered by the outside sales exemption to federal overtime law, the reps would be entitled to nothing.
Novartis said in a statement that while it believes it pays workers in accordance with applicable federal and state laws, “it is time to resolve these wage and hour claims.”
The plaintiffs in this case are pharmaceutical sales representatives who worked for the company between 2002 and 2007, and from Jan. 25, 2009, to the present.
A final approval hearing is scheduled for May 31.