Friday, December 01, 2006

When is a drug rep not a salesperson?

Answer. When they are suing their employers for overtime pay!

Drug company agents, who say they routinely work 60-hour weeks visiting doctors' offices, said Thursday that they had sued Pfizer Inc., Johnson & Johnson and six other drug companies for failing to pay overtime.

The lawsuits, which could involve tens of thousands of U.S. employees, add the pharmaceutical industry to other sectors that have been accused of giving rank-and-file workers managerial-like job titles to avoid paying overtime.

The suits follow Pfizer's announcement Tuesday that it will lay off a fifth of its U.S. sales staff, underscoring concern about an industrywide retrenchment as drug firms face pressure to cut costs.

The suits are similar to dozens of claims filed in recent years against major retailers, insurers and other employers. Lawyers for the plaintiffs are also readying a second group of suits against big drug makers, alleging they have discriminated against older representatives.

The claims by pharmaceutical agents were made in complaints filed in recent weeks in state and federal courts in New York, New Jersey and California. The cases have all been moved to federal courts.

The suits contend the companies improperly designated the agents exempt from laws requiring overtime for employees who work more than 40 hours a week. Under federal law, only employees in certain occupational categories — including managers, professionals and outside sales representatives — aren't entitled to overtime.

The plaintiffs contend that the drug agents don't qualify as sales representatives because the doctors they visit aren't actually buying anything from them, said Charles Joseph, an attorney for the workers. Instead, he said, the agents are basically "marketing or promotional people. A large part of their job is to drive and drop off samples at the doctor's office."

The complaints seek back pay and damages for current and former employees.

Drug company executives denied the contentions. "We're obviously aware of the lawsuits," said Pfizer spokesman Bryant Haskins. "We don't believe they have any merit and we will vigorously defend that position."

LA Times

3 comments:

Chrislbs said...

Not sales people? I guess when you have a geographically specific goal on sales, you might think of yourself as a marketer, but the rest of the world would say "sales rep."

Anonymous said...

Personally I hope they win and win big if for no other reason the big pharma deserves to lose. They have been "winning" too many times, for too long, with this and most previous administrations on their side so one day the tide has to turn and this is one of the cases that might do it. What are the chances? Same as someone winning that big lotto, but someone does.
On the other hand, the pharma sales reps can't have it both ways.
Nice, well paid jobs with lot of "free" time on their hands, if they are smart and work smart not hard. Some smart ones had two of these jobs at the same times, with two comany cars etc. and managed to do well for both Co's, knowing full well it would be over, usually suddenly.
Yes the big pharma have learned that reps in the field do lot of things that are not related to pushing their drugs. So in the last 10-15 years they tightened the rules of the game. The "smart" ones continue to do the task in less than 8 hours,usually 3-5. Yes if you want to clime the big pharma food chain, you have to "die" for it and that would be with or without overtime. In such case you are "on call" 25 hours per day.
There is this debate: "Life and work balance". The way it works in big pharma nowdays, "you give us 12-15 hours per day and the balace of the day is you life". This is also known for other big business, the only thing is the big pharma has "arrived" and does everything as othed big businesses do. That is perhaps the main source of the misconduct that is widespread in the today's "ethical" business as pharmaceutical business used to be known, and was. Today it ain't.

Anonymous said...

The drug reps part of the lawsuit don't qualify as sales reps because the doctors they visit aren't actually buying anything from them. They're marketing or promotional staff who drive and drop off samples at the doctor's office.