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Pharma (Abbott) Sales Reps Ruled Not Exempt From FLSA

Written by Evan Weinberger Monday, 28 June 2010 08:32

overtime sales New York (June 14, 2010) -- A federal judge has ruled that sales representatives alleging Abbott Laboratories violated the Fair Labor Standards Act are not exempt from the federally mandated premium pay rate for overtime hours because, among other things, they don't actually make sales.

In a summary judgment ruling Friday, Judge Ruben Castillo of the U.S. District Court for the Northern District of Illinois denied Abbott's bid to classify the sales representatives as outside salesmen and to employ an administrative exemption for the sales representatives.

Judge Castillo said Abbott's arguments fell flat because the sales representatives did not actually complete any sales. Rather, they were in charge of publicizing the Abbott Park, Ill.-based pharmaceutical company's products to physicians. An Abbott “trade group” then entered into sales agreements with customers.

Evan Weinberger

Attached is a copy of the Judge Castillo' s recent decision. Decision of Court Against Abbot Labs

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Author of this article: Evan Weinberger

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