The 9th Circuit Punts to The California Supreme Court
Our Comment:
Yesterday, the 9th Circuit Court of Appeals certified two questions for review to the California Supreme Court.
As we discussed previously we anticipated that the 9th would ask for guidance from the California Supreme Court to determine these issues of first impression. The first question focuses on whether or not pharmaceutical representatives fall within the “outside sales exemption.” The other question focuses on the administrative exemption and whether or not application is applicable there as well. The California Supreme Court also is considering another case Harris v. Superior Court which addresses the first prong of the administrative exemption. This question addresses the second prong.
Should the court affirm in Harris that may moot the administrative question here. Even if Harris is reversed we believe we can prevail on the second prong in which case the exemption would not apply and the pharma reps would be entitled to significant overtime compensation going back at that time potentially 8-9 years.
