Novartis To Pay $99M in Employment Misclassification Lawsuit Settlement
According to recent employee misclassification news that our Anaheim, California labor and employment lawyers have been following, a unit of Novartis AG, the Swiss pharmaceutical company, received preliminary approval from a New York U.S. District Judge this week, for a $99 million settlement--to resolve the wage and hour lawsuit brought by 7,700 sales former and current sales representatives who claimed they experienced employee misclassification and were denied overtime payment.
The settlement follows a July 2010 ruling by New York's 2nd U.S. Circuit Court of Appeals, that Vincent Howard discussed in a related Costa Mesa employment lawyers blog. The ruling decided that the sales representatives, who meet with physicians to encourage them to prescribe the drug company's medicine, were qualified for overtime under the U.S. Fair Labor Standards Act (FLSA), and should not be classified as "exempt" from state and federal overtime laws.
In April, the Supreme Court will hear arguments on a similar case involving employee misclassification, with a GlaxoSmithKline lawsuit--where the nation's highest court will rule on whether the outside sales employees are subject to exemptions under state and federal labor law, or if they are promoters or marketers who should receive overtime payment.
As Vincent Howard has reported in a previous Carson, California employment lawyer blog, under California law and the FLSA, most non-exempt employees are entitled to overtime compensation, which by law equals time and one half their normal rate of payment for every hour worked beyond forty in a workweek.
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