The outside sales exemption: does it really apply to your client? Overtime and wage claims under the Fair Labor Standards Act based on misclassified sales personnel - many in the pharmaceutical industry - have risen dramatically. This article explores recent case law and gives tips to Illinois practitioners to ensure compliance by their business clients.

Illinois Bar JournalVol. 98 Nbr. 8, August 2010

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The outside sales exemption: does it really apply to your client? Overtime and wage claims under the Fair Labor Standards Act based on misclassified sales personnel - many in the pharmaceutical industry - have risen dramatically. This article explores recent case law and gives tips to Illinois practitioners to ensure compliance by their business clients.

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Picture the following scenario: A salesperson for a multinational pharmaceutical manufacturer spends his entire workday away from the manufacturer's offices. He visits physicians throughout his sales territory and encourages them to prescribe the manufacturer's pharmaceuticals to their patients.

The salesperson takes healthcare professionals to lunch where he explains the benefits of the manufacturer's pharmaceuticals. The manufacturer provides the salesperson with the scripts and talking points for such meetings. The salesperson attends after-hours training conferences with other salespeople where he learns about new pharmaceutical products. He receives extensive medical...

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