Chicago Tribune: ‘Abbott sued by drug reps on overtime pay’

Pharmalot.com: ‘Sales Reps File More Overtime Lawsuits’

Sales Reps File More Overtime Lawsuits
Pharmalot.com
June 28, 2007

Sales reps are filing lawsuits today against two more drugmakers – Bristol-Myers Squibb and Abbott Labs – over alleged violations of state and federal overtime laws. With these filings, all of the biggest drugmakers face overtime lawsuits in state and federal courts, according to the lawyers for the sales reps.

The lawsuits charge the drugmakers unlawfully characterize sales reps as “exempt” under the Fair Labor Standards Act and other labor laws, depriving the reps of overtime pay. The lawsuits charge sales reps may have fancy titles, but work 60 to 70 hours a week, have little or no decision-making responsibility and their jobs should be covered by state and federal overtime laws.

The other drugmakers targeted include AstraZeneca, Johnson & Johnson, Amgen, Eli Lilly, Hoffmann-La Roche, Novartis, Merck, Wyeth, GlaxoSmithKline, Bayer, Boehringer-Ingelheim, Schering-Plough and Sanofi Aventis.

“Although the companies claim that the representatives are salespersons and therefore not protected by overtime laws, with some exceptions, they actually don’t sell anything,” says Charles Joseph, one of the lawyers.

“Rather, they are tasked to influence the prescribing behaviors of doctors. Many employees in all industries are under the mistaken impression that being salaried means that they are not protected under the overtime laws. But a salaried employee is entitled to overtime unless they fit within one of the closely defined exceptions to the rule.”

Beth Amendola of Coconut Creek, Florida, was at Bristol-Myers Squibb from 1998 until 2006, and won top regional sales awards five of the eight years she worked there. “We would be in the field from 8 AM until 5 PM, and then have 3 to 4 hours of paperwork to complete at night. I was always at their beck and call. I felt like the Sorcerers’ Apprentice where all the pails and buckets kept coming, no matter how much work I did. Overtime was mandatory; overtime pay was not an option.”

The varios law firms involved in the litigation are working hard to solicit sales reps to join the lawsuits. They’ve set up a web site, Pharmaovertime.com, for instance, and toll-free numbers. Meanwhile, the lawyers say class certification was been granted in the case against Novartis.

The proposed classes in the combined lawsuits include tens of thousands of sales reps throughout the country. The plaintiffs are asking federal and state courts to order the drugmakers to provide overtime pay going forward to eligible employees as well as compensation and damages to current and former employees who were unfairly denied overtime in the past.

Press Release: Pharmaceutical Reps File Overtime Lawsuits

June 28, 2007 12:01 AM Eastern Daylight Time

Kingsley & Kingsley Announces Pharmaceutical Reps File Overtime Lawsuits Against Bristol-Myers Squibb and Abbot Laboratories

Virtually All Major Drug Companies Now Face Class Action Suits for Violating Federal and State Labor Laws

LOS ANGELES–(BUSINESS WIRE)–This morning, pharmaceutical representatives filed lawsuits against the pharmaceutical giants Bristol-Myers Squibb and Abbott Laboratories. The suits are the latest in a series of class actions by employees for violation of state and federal overtime laws by drug companies. All of the largest drug companies are now facing national overtime lawsuits filed in state and federal courts in California, New York, New Jersey, Illinois and Connecticut.

The lawsuits against Bristol-Myers are being filed in federal court in New York and in state court in California; the suit against Abbott is being filed in federal court in Chicago. The new lawsuits charge that the companies – like others in the industry – unlawfully characterize pharmaceutical representatives as “exempt” under the Fair Labor Standards Act and other labor laws, thus depriving the reps of overtime pay earned and owed.

Although pharmaceutical reps are often given fancy titles, they have little or no decision-making responsibility and their jobs should be covered by state and federal overtime laws, the lawsuits charge.

These and earlier cases filed in recent months – against AstraZeneca, Johnson & Johnson, Amgen, Eli Lilly, Hoffman LaRoche, Novartis, Merck, Wyeth, GlaxoSmithKline, Bayer, Boehringer-Ingelheim, Schering-Plough and Sanofi Aventis – are being litigated by the Los Angeles based-firms of Kingsley & Kingsley, LLP and Spiro Moss Barness LLP, the New York firm of Joseph and Herzfeld, LLP and/or the Washington, DC law firm of Sanford Wittels & Heisler, LLP. The New York firm of Emery Celli Brinckerhoff & Abady LLP is also litigating the Bristol-Myers Squibb and the Eli Lilly action, in which it is joined by the New York office of Seeger Weiss.

“The industry as a whole employs about 100,000 reps,” said Eric Kingsley of Kingsley & Kingsley. “They routinely work very long hours, often 60 hours a week and sometimes up to 70 or more.”

“Although the companies claim that the representatives are salespersons and therefore not protected by overtime laws, with some exceptions, they actually don’t sell anything,” explained Charles Joseph of Joseph & Herzfeld. “Rather, they are tasked to influence the prescribing behaviors of doctors. Many employees in all industries are under the mistaken impression that being salaried means that they are not protected under the overtime laws. But a salaried employee is entitled to overtime unless they fit within one of the closely defined exceptions to the rule.”

“These are loyal, hardworking employees who play by the rules,” said Ilann Maazel of Emery Celli Brinckerhoff & Abady LLP. “There is no excuse for Bristol-Myers’ failure to properly compensate its employees.”

Plaintiff Beth Amendola of Coconut Creek, Florida, who was at Bristol-Myers Squibb from 1998 until 2006, won top regional sales awards five of the eight years she worked at the company. “We would be in the field from 8 AM until 5 PM, and then have 3-4 hours of paperwork to complete at night. I was always at their beck and call. I felt like the Sorcerers’ Apprentice where all the pails and buckets kept coming, no matter how much work I did. Overtime was mandatory; overtime pay was not an option.”

Recent class action lawsuits have won multimillion-dollar settlements for insurance adjusters and computer technicians who were illegally denied overtime by employers who claimed they were exempt.

Class certification has been granted in the case against Novartis (Lopes v. Novartis), which was originally filed by Sanford Wittels in March 2006. “Hundreds of Novartis reps have joined the suit and we expect shortly that many more will,” said attorney David Sanford, who has also filed a sex discrimination lawsuit against the company.

The law firms have set up a website: www.pharmarepovertime.com and toll-free numbers: 888-500-8469 and 866-348-7394 for current and former pharmaceutical company employees who are interested in joining the lawsuits.

According to Kingsley, more than 500 pharmaceutical reps have already called the hotline. “Each time, the reps tell us how they have been forced to work nights and weekends on a regular basis and have not been paid overtime,” he noted.

Plaintiffs who call the hotline describe how their jobs have changed dramatically over the years. In the past, pharmaceutical representatives had the freedom to use their own educated judgment and creativity in marketing the drugs. In the last several years, however, perhaps because of lawsuits over drug marketing and increasing FDA scrutiny, companies have insisted that the representatives use memorized scripts or stick to regimented guidelines as to what they may and may not say. “The complete loss of autonomy in making decisions and scheduling work and family life is a great source of frustration,” said Kingsley. “Many reps feel that what was once a desirable job has turned into rote performance under intense scrutiny at the whim of their immediate supervisors. This is difficult for all reps, but is particularly hard on women with children.”

Bristol-Myers Squibb Company is a multibillion-dollar Delaware Corporation with headquarters in New York City; Abbott Laboratories is headquartered in Illinois; the company’s revenue last year was more than $22 billion. Both corporations do business throughout the United States and internationally.

The proposed classes in the combined lawsuits include tens of thousands of pharmaceutical representatives throughout the country. The plaintiffs are asking federal and state courts to order the drug companies to provide overtime pay going forward to eligible employees as well as compensation and damages to current and former employees who were unfairly denied overtime in the past.

Further Information

Members of the media can obtain copies of the complaints by going to the website: www.pharmarepovertime.com.

Current and former pharmaceutical company representatives who wish to learn more about the lawsuits or to join the lawsuits should visit www.pharmarepovertime.com or call (888) 500-8469 or (866) 348-7394 to contact plaintiffs’ attorneys.

Contacts

Kingsley & Kingsley, APC
Eric Kingsley, 818-990-8300
or
Joseph & Herzfeld LLP
Charles Joseph (except BMS), 866-348-7394

National Law Journal: ‘Drug salespeople sue for unpaid overtime’

Drug salespeople sue for unpaid overtime

More than a dozen suits filed in several states seeking overtime pay.

Tresa Baldas/Staff reporter, National Law Journal
March 19, 2007

Following what lawyers describe as a growing trend in class action overtime litigation, thousands of pharmaceutical representatives are suing eight major drug companies over unpaid overtime for all the hours they spend hawking drugs in doctors’ offices.

Currently, more than a dozen such pharmaceutical overtime lawsuits-all of them filed in recent months-are pending in California, Connecticut, New Jersey and New York. Several more are expected to be filed this week in New York, Pennsylvania and possibly Minnesota.

Defendants include AstraZeneca, Pfizer Inc., Johnson & Johnson, Amgen Inc., Eli Lilly & Co., GlaxoSmithKline PLC, Bayer Corp. and Hoffman-LaRoche Inc., which has oral arguments scheduled for March 19.

The lawsuits are the latest in a series of class actions seeking overtime pay from U.S. businesses in recent years.

IBM Corp. last month agreed to pay $65 million to 32,000 technology workers claiming they were intentionally misclassified so they wouldn’t get overtime pay. Rosenburg v. IBM Corp., No. C06-0430 (N.D. Calif.).

In October, Wal-Mart Stores Inc. lost a $78 million jury verdict in Pennsylvania in class action involving overtime and rest breaks. Hummel v. Wal-Mart, No. 3757, (Philadelphia Co., Pa., Ct. C.P.).

In September, a California judge certified an overtime class action against FedEx Kinko’s alleging hundreds of managers were misclassified as executive employees. Whiteway v. FedEx Kinko’s Office & Print Servs. Inc., No. 05-2320 (N.D. Calif.).

An army of ‘pharm-bots’

In the pharmaceutical cases, plaintiffs allege that drug companies are misclassifying them as salespeople, denying them overtime even though they work 50- to 60-hour weeks. They argue that they’re not actually selling anything, but rather acting as public relations representatives who memorize carefully worded scripts about drugs.

“These reps aren’t making sales. They’re marketing products to doctors . . . . They are not sales reps, but pharm-bots who do and say as they are told,” said Eric Kingsley of Los Angeles-based Kingsley & Kingsley, who is representing plaintiffs in several of the lawsuits.

Some company officials denied the allegations, while others declined comment.

Bryant Haskins, spokesman for Pfizer, which is facing federal lawsuits in New York and California, defended the company’s pay practices. Coultrip v. Pfizer, No. 06CV09952 (S.D.N.Y.). “We believe our sales representatives are properly classified as exempt from overtime pay and are well compensated for their responsibilities,” Haskins said. “We don’t believe that the lawsuits have any merit.”

Laura King, spokeswoman for AstraZeneca, said “AstraZeneca adheres to the laws and regulations of all the states where it conducts business, and we value the talents and contributions of all our employees. With regard to this case, AstraZeneca intends to defend our position vigorously.”

Attorney Mike Delikat of Orrick, Herrington & Sutcliffe’s New York office, who is representing Hoffman LaRoche, declined comment.

Frank Dee of McElroy, Deutch, Mulvaney & Carpenter in Morristown, N.J., who represents Johnson & Johnson, also declined comment.

Anthony DeMeis, founder of the Pharmaceutical Representative Society of New York, defended the drug industry’s pay practices, saying drug reps are, in fact, salespeople who are allowed bonuses-not overtime-for their work. And the more prescriptions that doctors write, he noted, the higher the bonus.

“People can be making $60,000 their first year, not counting a car, computer, phone, home line for work or Internet access,” said DeMeis, a 10-year drug rep who believes the plaintiffs in the overtime litigation are novices and “underperformers” who don’t fully understand the system.

Not exactly, countered Charles Joseph of New York’s Joseph & Herzfeld, who is also representing plaintiffs in the overtime lawsuits.

“Many of the reps that I’ve spoken to have talked about how they used to love the job . . . .[T]hey had the ability to use true sales skills and creativity,” Joseph said. “But one of the reasons we’ve received so many phone calls is that many of them now call themselves pharm-bots who feel that they’re doing very little but dropping off samples and delivering a canned message.”

According to labor and employment attorneys, overtime lawsuits, particularly class actions, have been on the rise since federal wage and hour laws were revised in August 2004 to more strictly define who is eligible for overtime.

Press Release: ‘New Lawsuit Filed Against Sanofi –Aventis U.S. for Failure to Pay Pharmaceutical Reps Overtime’

Kingsley & Kingsley, APC and Joseph & Herzfeld LLP Announce New Lawsuit Filed Against Sanofi –Aventis U.S. for Failure to Pay Pharmaceutical Reps Overtime

Ten Major Drug Companies Now Face Class Action Suits for Violating Federal and State Labor Laws

SAN FRANCISCO–(BUSINESS WIRE)–The pharmaceutical giant Sanofi-Aventis U.S. is the latest target of a series of lawsuits brought by employees that allege violation of state and federal overtime laws by drug companies.

The suit, filed today in federal court in San Francisco, charges that the company – like others in the industry – unlawfully characterizes pharmaceutical representatives as “exempt” under the Fair Labor Standards Act and various state labor laws in order to deprive them of overtime pay.

The complaint against Sanofi-Aventis along with earlier cases filed in recent weeks – against AstraZeneca, Pfizer, Johnson & Johnson, Amgen, Eli Lilly, Hoffman LaRoche, GlaxoSmithKline, Bayer, and Boehringer-Ingelheim – are being litigated by the Los Angeles based-firm of Kingsley & Kingsley, APC and the New York firm of Joseph and Herzfeld LLP. The plaintiffs’ lawyers have now been joined by the law firm of Spiro, Moss in Los Angeles.

“We will seek to prove that thousands of employees from the major drug companies are being denied their overtime pay,” charged Eric Kingsley of Kingsley & Kingsley. “They work very long hours, 55-60 hours a week and often well more than that.”

“Many employees in all industries are under the mistaken impression that being salaried means that they are not protected under the overtime laws. This is not correct,” explained Charles Joseph of Joseph & Herzfeld. “Our lawsuits allege that, although the drug companies deprived representatives of overtime by classifying them as exempt, they are in fact not exempt under federal and state laws. The companies have claimed that the representatives are ‘salespersons’ and therefore not protected by the overtime laws, but drug reps’ work is promotional – they actually don’t sell anything. ”

The law firms have set up a website: www.pharmarepovertime.com and a toll-free number: 888-500-8469 for current and former pharmaceutical company employees who are interested in joining the lawsuits.

“Since the first lawsuits were filed, hundreds of pharmaceutical reps from all over the country have contacted us,” said Kingsley. “Over and over we hear similar stories about the reps being forced to work nights and weekends on a regular basis, and the companies’ failure to pay overtime.”

Plaintiffs who call the hotline describe how their jobs have changed dramatically over the years. In the past, the representatives had the freedom to use their own educated judgment and creativity in marketing the drugs. In the last several years, perhaps because of lawsuits over drug marketing and increasing FDA scrutiny, companies have insisted that the representatives use carefully memorized scripts or stick to regimented guidelines as to what they may and may not say. “The complete loss of autonomy in making decisions and scheduling their working and family life is a great source of frustration” said Kingsley. “Many reps feel that what was once a desirable job has turned into rote performance under intense scrutiny at the virtually total beck and call of their management, a requirement sometimes exercised capriciously without time even to reschedule child care.”

The multibillion dollar drug companies operate in all fifty states and employ more than half a million workers; the proposed classes in the combined lawsuits include tens of thousands of pharmaceutical representatives throughout the United States.

The plaintiffs are asking federal and state courts in New York, New Jersey, Connecticut and California to order the drug companies to provide overtime pay to eligible employees as well as compensation and damages to current and former employees who were denied overtime.

Further Information

Members of the media can obtain copies of the complaints by going to the website: www.pharmarepovertime.com.

Current and former pharmaceutical company representatives who wish to learn more about the lawsuits or to join the lawsuits should visit www.pharmarepovertime.com or call (888) 500-8469 (Kingsley & Kingsley in California) or (866) 348-7394 (Joseph & Herzfeld in New York) to contact plaintiffs’ attorneys.

AP: ‘Pharmaceutical workers sue for back pay’

Pharmaceutical workers sue for back pay

Associated Press
December 28, 2006

HARTFORD, Conn. (AP) – Susan Schaefer LaRose quit her sales job in May after 18 years with pharmaceutical giant Eli Lilly and Co., frustrated by long work weeks that frequently encroached on weekends and vacations.

And then she sued.

Her lawsuit, part of a series of class action claims filed last month against nine major drug companies, seeks tens of millions of dollars in back pay for the thousands of drug company salespeople across the country.

“I was told when I started with Eli Lilly that I was exempt from overtime,” said Schaefer LaRose, a 50-year-old mother of two from Chittenango, N.Y., about 17 miles east of Syracuse. “I figured they were the large employer and I never thought to question it.”

The lawsuits, filed in New York, California, New Jersey and Connecticut, are the latest in a series of mass tort claims seeking overtime pay from U.S. businesses in recent years. IBM Corp. last month agreed to pay $65 million to 32,000 technology workers who claimed their jobs were wrongly classified as overtime-exempt.

The pharmaceutical company lawsuits seek overtime wages dating back two to six years, under federal and state statutes of limitations. Other companies affected are Boehringer Ingelheim Pharmaceuticals Inc., AstraZeneca PLC, Pfizer Inc., Johnson & Johnson, Amgen Inc., Hoffman Larouch, GlaxoSmithKline PLC and Bayer AG.

Some of the companies deny the allegations, while others are reviewing the lawsuits before commenting.

Abby Baron, a spokeswoman for AstraZeneca, said her company adheres to all labor laws. “We intend to defend our position vigorously and we have the utmost confidence in the legal process,” she said.

Pfizer spokesman Bryant Haskins said the company would vigorously contest the lawsuit.

In the case that Schaefer LaRose is part of, federal labor law allows outside sales forces to be exempt from overtime pay in recognition of the unique abilities offered by a skilled sales staff. Schaefer LaRose said she was able to draw on her skills, using her own discretion in how she pitched the company’s products to doctors when she started with Lilly in 1988.

But within a decade, drug companies began carefully scripting sales pitches for fear of competitors’ lawsuits or scrutiny by the Federal Food and Drug Administration.

“They no longer had that freedom for what the exemption was designed,” said New York attorney Charles Joseph, who brought one of the lawsuits. “The job has changed, and it has changed for the worse.”

Schaefer LaRose said her 45-hour work weeks began lengthening as cell phones and e-mail became more prevalent. Two co-workers were chastised by a district manager last spring, she said, for not checking their e-mails during vacations. She also said Lilly does not allow sales reps to log onto the company’s computer system between 8 a.m. and 5 p.m., prime hours for calling doctors, which forces reps to do reports on nights and weekends.

“Those things were supposed to simplify our lives. They didn’t,” Schaefer LaRose said.

Lilly spokesman Phil Belt said the company would not respond to any of Schaefer LaRose’s allegations because of the pending lawsuit. But he said the company values its employees and compensates them in accordance with all laws and regulations.

Dana Higgs, another plaintiff who worked for Pfizer for more than 20 years, added that the increasingly long work weeks have had an impact on families, especially single mothers who have been forced to make last-minute child-care arrangements and pay caregivers when called to work overtime.

“What they required of us was unfair,” said Higgs, who lives in Pennsylvania. “My boss told me that I needed to be engaged in business 24/7.”

Not all sales reps support the lawsuits.

Anthony DeMeis, a co-founder of the Pharmaceutical Representative Society of New York, said it was unfortunate that some people are looking for ways to get more money from their employers. He said he doesn’t know of many other jobs that offer college grads $60,000 to $80,000 a year with a free car and free cell phone.

“Everyone I know who does their job well works 60 or more hours a week,” DeMeis said. “The harder you work, the more work you make for yourself. I think they’re getting paid for overtime, through the bonuses they’re getting.”