Pharmaceutical companies sued for overtime violations

Violations of the Fair Labor Standards Act (FLSA) have become prominent in the pharmaceuticals industry in recent years. The FLSA pertains to standards in minimum wage, overtime pay, recordkeeping, and youth employment. Many pharmaceutical companies have been withholding overtime wages from pharmaceutical representatives that have been working over forty hours per week.

The Overtime section of the FLSA states: “Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.”

Many pharmaceutical companies have misclassified their reps as exempt from FLSA’s overtime requirement when in fact they were not. Pharmaceutical reps have begun joining together in the face of this wage injustice. For example, in January 2012, a $99 million settlement for Novartis reps, who were unlawfully deprived of overtime wages, was preliminarily approved by a federal court in New York.

Last week the Arizona law firm, JacksonWhite filed a collective action lawsuit against Otsuka America Pharmaceuticals, Inc. for not paying its employees the overtime wages they are entitled under the FLSA. The Complaint was filed on behalf of all Otsuka pharmaceutical representatives employed in the U.S. from May 2009 up to the present.

Otsuka has never paid its employees overtime wages despite requiring them to work much more than 40-hour work weeks. Otsuka’s violation of the FLSA could cost them up to two times the amount of overtime wages that Otsuka should have been paying their pharmaceutical reps over the past three years.

JacksonWhite also has a collective action lawsuit against GlaxoSmithKline, another pharmaceutical company, that is awaiting a decision by the Supreme Court. If the Supreme Court sides with the pharmaceutical reps from Glaxo, then it is probable that the Otsuka reps will also win their case and a precedent would be established for all other pharmaceutical reps.

Reps interested in participating in the Otsuka collective action lawsuit must provide written consent to join. Reps who delay joining may lose damages that are owed to them. Reps from other companies may also be able to join in this case or file a new lawsuit against the company that they work for.

Employee Class Action Litigation

This page contains all the information you need to know about class action lawsuits in California. Class action lawsuits are important for our society because they are a vehicle for employees to come together and assert their rights under California Labor Laws and federal employment laws, such as the Fair Labor Standards Act. Class actions are also important because they make it economically viable for lawyers to work on a contingency basis. When a company in California violates certain laws — such as overtime pay laws - it may be difficult for the employee to find a good lawyer to take the case because the damages may be too small. However, if other employees have faced similar violations, class action lawyers with the resources and experience needed to sue big companies may be willing to take the case and put a stop to the company’s illegal conduct.

Class Action Requirements

In order for a lawsuit to become a class action, the following requirements must be met: 

1. Impracticability - It must not be realistic for all of the employees and class members to bring their own individual claims against the company because there are too many people potentially affected. 
2. Commonality - There must be factual questions or legal questions that are common to all the class members and these common questions must dominate the focus of the litigation so the court does not have to spend time and resources on individualized issues, which would make the case drag on and potentially prejudice the other class members from seeking a speedy recovery. This requirement, known as “commonality” does not mean merely that all the employees have suffered from the same violations. 
3. Typicality - There must be a class representative who has been damaged by the employer in the same way that the members of the class have been damaged. For example This requirement is often referred to as “the class reps claims are typical of the claims of the class members.”
4. Beneficial for Parties - There must be substantial benefit to all the parties involved, including the employees, the employer and the court. In other words, the class action lawsuit 

Benefits of a Class Action Lawsuit

There are several benefits of pursuing a class action lawsuit as opposed to an individual action:

• Contingency Fee Representation — Employees can find contingency fee class action lawyers that have the resources and experience necessary to go up against a big company more easily than if it were an individual lawsuit because it is more economically viable for the law firm.
• Lower Retaliation Problems — Employees don’t have to fear retaliation for being a part of a class action suit because the only name on the lawsuit is that of the class representative and employees are presumed to be part of the class action unless they affirmatively choose to not participate in the class action in which case the employee “opts out” of the case. 
• Preserve Court Resources — Class actions preserve the resources of the courts. Instead of hundreds of individual cases being filed and flooding the courts, a class action suit allows the court to solve the problem one time. This also promotes consistency because if hundreds of individual lawsuits were filed some employees would lose and some would win on the same legal issue. 
• Incentive & Service Awards — In a class action settlement, the class representative (the person who starts the class action lawsuit) may be eligible for a service award in addition to the damages. 
• Putting a Stop to Illegal Conduct — Class action suits can be beneficial because employees can seek an injunction against the company which declares that what the company is doing is illegal and the company cannot continue to violate the law. This is beneficial because an injunction in class action litigation can create a fair workplace. 

If You Feel Cheated at Work, You’re Probably Not Alone

Despite some of the strongest employment rights laws in the nation, California employees are routinely cheated out of rightful earnings by employers who put profits before the law. The class action lawyers at Blumenthal, Nordrehaug & Bhowmik are known throughout the state of California for using class action lawsuits to protect groups of workers in cases involving overtime pay laws. 

There are several advantages for employees to use class action lawsuits to vindicate their employee rights. Retaining a class action lawyer may be benefecial for employees in that:

• Employees can be responsible for stopping illegal employment practices not only for themselves, but also for their co-workers
• Workers can contribute to the creation of good public policy
• Employees can earn an extra Service Award Payment in addition to the money they would win in the lawsuit

As the first person to initiate a class action lawsuit against a business, your employer will be careful to treat you fairly once you have retained a class action lawyer. You may be eligible to receive significant compensation as a service award. The service award money is in addition to the settlement or money a jury awards the class representative in a class action lawsuit. Take a look at some of our class action settlements.

Our Employment Lawyers Represent Workers in Class Action Lawsuits

We are the California class action attorneys of Blumenthal, Nordrehaug & Bhowmik. Our no win no fee contingency attorneys focus on California class action lawsuits involving employer violations of the California Labor Code and Fair Labor Standards Act. Our overtime pay lawyers focus on claims involving exempt vs. non-exempt employees. Contact a class action lawyer in San Diego or San Francisco for free legal advice about starting or joining class action lawsuits.

With a statewide class action practice and offices in San Diego, San Francisco and San Jose, our class action attorneys are known throughout the state of California for representing workers in class action lawsuits against big companies. Click here to see our class action lawsuit list.

Free Consultation ▪ Contingency Fee Class Action Attorneys

Learn more about federal and state class action lawsuits. If you are feeling cheated by your employer, chances are you aren’t alone.The class action attorneys at Blumenthal, Nordrehaug & Bhowmik represent employees in class action lawsuits against employers in San Diego, Los Angeles, San Francisco and Santa Clara, and throughout the rest of California.

FAMILY MEDICAL LEAVE ACT

Protecting Family Leave Rights Under the FMLA, FEHA and CFRA in California

Several state and federal laws protect employees from adverse employer action related to medical leave, family leave and time off for pregnancy and maternity. If you encounter trouble in taking advantage of your protected rights to family or medical leave, contact an employment law attorney at Blumenthal, Nordrehaug & Bhowmik for a free consultation.

We represent clients all over California on the full range of employment law claims, from wage and hour violations to workplace discrimination. Our lawyers and staff are fully committed to protecting employee interests and the right to fair treatment at work.

Call 800-568-8020 for a Free Case Evaluation

The main tools at our disposal for protecting the right to family and medical leave are the federal Family Medical Leave Act (FMLA) and the California Family Rights Act (CFRA). An additional state statute, the California Fair Employment and Housing Act (FEHA), protects employees from discrimination or adverse employer action motivated by the employee’s use of a right protected under the other laws.

If you have been on the job full-time for at least a year, you have the right to 12 weeks of unpaid leave to cover any of a number of personal or family needs:

• Personal illness or surgery
• Family member’s illness or surgery
• Physical therapy or convalescence
• Pregnancy or maternity
• Adoption

Some workers encounter problems with getting the company to agree to a period of protected leave, but it’s at least as common to run into trouble when you’re ready to return to work. Reassignments, transfers or changes in job description are often thinly veiled attempts to get you to quit. Sometimes your employer will save you the trouble and find an excuse not to let you back.

Our lawyers can help you recover damages from employers who interfere with the family leave rights of their employees all over California: Los Angeles, San Diego, San Francisco and Sacramento. To learn more about our ability to protect your rights under state or federal law, contact the California Family Rights Act attorneys at Blumenthal, Nordrehaug & Bhowmik.

Federal Overtime Rights FLSA

This page is dedicated to Overtime Pay Laws under the Fair Labor Standards Act and California Labor Code. Although this page should help employees understand some of the relevant laws, it is by no means a replacement for contacting an an employment lawyer.  Our employment lawyers offer free consultations and take qualified  individual cases and class action lawsuits on a contingency (no win, no fee) basis. 

Federal law is different than California law when it comes to employment laws. The Fair Labor Standards Act, also known as the FLSA, mandates that companies pay employees one and a half times the regular rate of pay when the employees work more than 40 hours in a workweek. The California Labor Code, in addition to requiring employers to pay employees overtime for working more than 40 hour weeks, also requires employers to pay employees one and a half times the regular rate of pay when the employee works more than 8 hours in a single day or when the employee works seven consecutive workdays in the same workweek. This difference between federal and state law is only one of many important. 

FLSA VS. LABOR CODE: MAJOR DIFFERENCES

(1) LABOR LAW BREAKS - According to Overtime Pay Laws in California, employees are entitled to a 30 minute labor law break for every 5 hours of work. Under federal law, however, there is not a labor law break provision. 

(2) UNREIMBURSED BUSINESS EXPENSES - Under the California Labor Code, employers can sue their employer for work related expenses that the employed paid for out of pocket. These are referred to business expense reimbursement laws and do not exist under the Fair Labor Standards Act. 

(3) EXEMPT VS. NON-EXEMPT EMPLOYEES -  In exempt vs. non-exempt lawsuits under California law, in order to be exempt from overtime pay laws, administrative employees must perform job duties that meet the test of the exemption more than 50% of the time, whereas under Federal overtime laws, employees must perform job duties that meet the test of the exemption a majority of the time, which does not necessarily mean 50% or more of the time. 

(4) DAMAGES & PENALTIES - Under California labor laws, employees can recover damages for the unpaid wages and additional penalties, like, waiting time penalties. Under federal law, employees can recover double damages for certain violations (often referred to as “liquidated damages”). 

Employee Options for Filing an Overtime Claim 

When employees believe that their company may have been acting in violation of their employee rights, they have 2 options if they wish to pursue an individual lawsuit or class action lawsuit.  The First option for employees is that they can contact an employment lawyer for advice about overtime pay laws. Many employment lawyers take these types of claims on a contingency fee basis. The second option for employees is to file a claim with the California Labor Board. Although both options are viable and have their pros and cons, unlike private lawyers, the California Labor Board cannot go after penalties for FLSA violations and can only extend the statute of limitations to 3 instead of 4 years. 

CONSULT WITH TOP OVERTIME PAY LAWYERS

For additional information about our approach to unfair pay practices anywhere in the state, contact the California overtime attorneys at Blumenthal, Nordrehaug & Bhowmik for a free consultation. We represent workers in individual and class action lawsuits on a contingency basis in San Diego, San Francisco, Los Angeles, Orange County, Santa Clara and throughout California.

Employment Agreements and Contracts FAQ

Are California Compete Agreements Valid in the Employment Context? 

An employer cannot lawfully make the signing of an employment agreement, which contains an unenforceable covenant not to compete, a condition of continued employment, even if such agreement contains choice of law or severability provisions which would enable the employer to enforce the other provisions of the employment agreement. An employer’s termination of an employee who refuses to sign such an agreement constitutes a wrongful termination in violation of public policy. The California Business & Profession Code invalidates provisions in employment contracts prohibiting an employee from working for a competitor after completion of his employment, or imposing a penalty if he does so, unless they are necessary to protect the employer’s trade secrets. However, a covenant not to compete in an employment agreement will not be viewed as a violation of California law if the covenant not to compete is necessary to protect the employer’s trade secrets since companies have the right to protect proprietary and property rights which are subject to protection under the law of unfair competition. If a contract is capable of two constructions, courts are bound to give such an interpretation as will make it lawful, operative, definite, reasonable and capable of being carried into effect.

What if my Employer Verbally Promised Me that My Employment is Not Subject to the At-Will Rule in California?

When employees sign an employment agreement with their company, as a general rule, the terms of the agreement are usually binding on both the employer and the employee as long as their is consideration, an offer and acceptance. If an employer subsequently promises an employee something that is not included in the employment agreement, the promise does not necessarily become part of the contract due to the parole evidence rule. Under the parole evidence rule, anything that happens or is promised out of the contract is excluded. However, this can be overcome when the contract is ambigous as to certain terms. Ambiguities in employment agreements are construed against the party that drafted the employment contract, which is usually the employer. If the agreement is silent as to the at-will employment relationship, then it may be possible to present the evidence of the employer’s promise. Contact our employment law office today for a free consultation about whether or not you are an at-will employee.

ATT & ARISE CLASS ACTION LAWSUIT

On March 28, 2011, the employment lawyers at Blumenthal, Nordrehaug & Bhowmik filed a class action lawsuit against Arise and AT&T alleging that the companies violated overtime pay laws by classifying at home call center employees as exempt vs. non-exempt from overtime pay laws. The class action lawsuit against AT&T and Arise is currently pending int he Northern District of California as Perry v. AT&T and Arise, Case No. CV111498JCS.

Class Action Lawsuits

Join Your Voice With Others in a Class Action Lawsuit

If you have a legitimate claim against your employer for violating federal and state wage-and-hour laws, you are probably not alone at your company. Many businesses find it quite profitable to engage in illegal practices, knowing that employees won’t notice or will be too afraid to complain. By joining in an employment class action lawsuit, you add your voice to many other co-workers facing the same problem.

For an employment class action lawsuit to proceed, a judge must first certify that enough evidence exists to show that all plaintiffs have suffered financial damages for a similar violation. Companies facing certified class action employment lawsuits know they must show up at the negotiating table with full and fair offers for compensation, or else they face significant damages awarded by juries.

Free Consultation ▪ No Attorney Fees Unless You Recover Compensation

Blumenthal, Nordrehaug & Bhowmik has extensive experience representing workers in employment class action litigation. If you think your employer is violating wage or labor laws in any of the following areas, please call us right away:

• Restricting independent contractor rights
• Misclassification of hourly and salaried employees
• Overtime pay
• Vacation pay and time-off benefits
• Expense reimbursement
• Minimum wage laws
• Inaccurate wage statements
• Severance package and release agreements

Our firm also handles employee law issues that involve the following:

• Discrimination
• Sexual harassment
• Wrongful termination

These can be handled as employment class action or individual claims

Free Consultation ▪ No Attorney Fees Unless You Recover Compensation

Our lawyers will discuss your claim during a free consultation and we handle the majority of employment class action litigation cases on a contingency basis. That means you will not pay attorney fees unless we help you recover compensation.

Extra Service Award Payments

If you initiate an employment class action litigation claim, you are typically eligible to receive extra compensation called a service award. Our firm has an excellent record of getting high *service awards for our clients.

Don’t Be Afraid of Retaliation

Because employers believe they can underpay employees who fear retaliation, they also believe they can get away with that practice. This is not true. We can hold these companies accountable under laws created to protect workers who report violations.

We represent clients in Los Angeles, San Diego, Orange County, San Francisco and Santa Clara, and throughout California. Contact us to schedule a free consultation with one of our lawyers.