U.S. Court of Appeals for the Ninth Circuit

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Ninth Circuit upholds overtime pay sales exemption for pharmaceutical representatives

July 23, 2012

In an unpublished decision, the Ninth Circuit held that pharmaceutical sales reps are not owed overtime compensation under California Labor Code Section 510 because they fall under the administrative exception to the state's overtime wage requirements.

U.S. Chamber files amicus brief

February 20, 2008

NCLC urged the Ninth Circuit to affirm district court decisions holding that pharmaceutical sales representatives were exempt under federal and California’s mandatory overtime laws as outside salespersons. In its brief, NCLC argued that the statutory definition of “sales” was intended to be flexible and broadly applied and the sales model used by the pharmaceutical industry fits comfortably within the definition of “outside sales.”

Amicus brief filed 2/20/08. Oral argument held 11/3/08. Oral argument held 2/11/09. Ninth Circuit certified questions regarding the outside sales representative exemption to the California Supreme Court 5/5/09. California Supreme Court denied certification 6/10/09. Ninth Circuit decision 7/23/12.

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