Amendola v. Bristol-Myers Squibb Co.

558 F. Supp. 2d 459, 13 Wage & Hour Cas.2d (BNA) 1392, 2008 U.S. Dist. LEXIS 43681, 2008 WL 2309165
CourtDistrict Court, S.D. New York
DecidedJune 4, 2008
Docket07 Civ. 6088(DLC)
StatusPublished
Cited by48 cases

This text of 558 F. Supp. 2d 459 (Amendola v. Bristol-Myers Squibb Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amendola v. Bristol-Myers Squibb Co., 558 F. Supp. 2d 459, 13 Wage & Hour Cas.2d (BNA) 1392, 2008 U.S. Dist. LEXIS 43681, 2008 WL 2309165 (S.D.N.Y. 2008).

Opinion

*462 OPINION & ORDER

DENISE COTE, District Judge.

This litigation raises the question of whether pharmaceutical representatives (“PRs”) employed by a major pharmaceutical company are properly classified as exempt from the overtime compensation rules prescribed by the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. (“FLSA”). Plaintiff Beth Amendola (“Am-endola”) has moved for discovery of the names and addresses of the defendant’s PRs, authorization for notice of this collective action to be sent to those potential plaintiffs, and equitable tolling of any claims they may file. Finding among other things that the defendant’s PRs are not exempt from the FLSA’s overtime compensation provisions under the exemption which applies to outside salespersons, but that they are likely subject to the exemption for administrative employees, the plaintiff is not authorized to send notice to the defendant’s PRs. The request for equitable tolling is denied.

PROCEDURAL HISTORY

Amendola was employed by defendant Bristol-Myers Squibb Company (“BMS”) as a PR from February 1998 through March 2006. She filed this action, individually and on behalf of other similarly situated BMS employees, on June 28, 2007, alleging that BMS often required her to work more than forty hours per week but never paid her overtime wages. She quickly demanded that BMS provide her with the names and contact information of all PRs, or, in the alternative, that BMS consent to the equitable tolling of any FLSA claims. BMS refused, and Amen-dola requested discovery tailored to and in anticipation of her motion for authorization of notice of this collective action to all PRs employed by BMS.

At a conference held to address the parties’ disputes over the scope of discovery, BMS explained that its PRs include four levels of seniority and are employed by five distinct business units, each of which is subdivided across several geographic regions. BMS asserted that it would challenge Amendola’s contention that all of its PRs are “similarly situated” for purposes of the FLSA collective action without regard to their seniority, business unit, or geographic location. The Court rejected Amendola’s assertion that she immediately needed the names of all PRs — roughly 4,500 in total — employed by BMS during a three-year period. Instead, the Court instructed BMS to provide Amendola with the names of two or three PRs randomly selected from each business unit, geographic region, and job level. By October 19, BMS had provided Amendola with the names and addresses of 350 employees, as well as more than 6,000 documents. In response to Amendola’s Rule 30(b)(6) notice, BMS produced five witnesses for depositions — one vice president or manager overseeing each of BMS’s five business divisions. Amendola deposed solely these five witnesses, and BMS deposed Amendo-la.

Following this preliminary discovery, Amendola moved for authorization to send notice of this collective action to all of BMS’s PRs. 1 BMS has opposed the mo *463 tion, arguing principally that its PRs are exempted from the FLSA overtime compensation rules by one or more of four statutory and regulatory exemptions. Following a description of the evidentiary record presented by the parties on this motion, the Opinion will address each of these four exemptions.

BACKGROUND

1. Structure of BMS’s Operations

BMS is a global pharmaceutical company with headquarters in New York. It employs about 2,400 PRs to promote BMS products to physicians, hospitals, clinics, and medical institutions across the United States. 2 BMS, like other pharmaceutical companies, classifies these employees— who work from their own homes — as exempt from the FLSA. PRs receive a salary plus incentive compensation. They do not record the hours they work, nor do they receive payments for overtime work.

BMS’s PRs are all employed within its U.S. Pharmaceutical Group. The U.S. Pharmaceutical Group consists of five separate business units: (i) Cardiovascular/Metabolics (“CV/Met”); (ii) Virology; (iii) Oncology; (iv) Immunoscience; and (v) Neuroscience. Within CV/Met, PRs are assigned to either “Primary Care” or “Specialty Sales.” Those assigned to Specialty Sales “call on different customers, they have deeper product and disease state knowledge, they have deeper market and industry knowledge, [and] they are usually more experienced” than Primary Care PRs. Primary Care PRs typically receive lower base salaries than PRs assigned to Specialty Sales and BMS’s four other business units. The five business units have separate management, training resources, customers, and incentive compensation structures.

The five business units are each divided geographically into “Regions,” and then further divided into “Districts,” which are in turn subdivided into “Territories.” At least one PR is assigned to each Territory.

Finally, PRs are appointed to one of at least three levels of seniority: Territory Business Manager (“TBM”), Senior TBM, and Executive TBM. The Primary Care sector of CV/Met also has a trainee or Associate TBM (“ATBM”) position. All PRs, at whatever level of seniority, are supervised by District Business Managers.

II. Duties of PRs 3

PRs are required to be in the field visiting medical providers from 8 a.m. to 5 p.m., and spend time in the evenings preparing for these visits. The goal of the visits is to influence the prescription practices of the providers. PRs record notes *464 about their “calls” — as these visits are known in the pharmaceutical industry — in a “Call Max” system. They are required to attend online and in-person training, which includes instruction on the BMS “ENGAGE” method — a tool to teach PRs how to prepare for, conduct, and record calls to medical providers. BMS has developed a “core message” about each drug and trains PRs to relay that message on every visit. District Business Managers supervise PRs principally by joining them on their calls about once every month.

BMS provides a list of medical providers upon whom PRs are expected to call, and sets guidelines as to how many calls they should average per day. BMS assigns one to three drugs to each PR, and often specifies the order in which the drugs should be promoted during a call. A PR’s adherence to these guidelines affects the employee’s bonus.

PRs have flexibility in determining which provider to call upon on any given day and how often to do so, setting their own daily and weekly schedules. Subject to the approval of their supervisors, they can also add to and subtract from their lists of assigned providers. Amendola often did so, explaining that “[a]s long as you fulfilled your requirement, then you could add to your call list.” She noted that in one instance an antibiotic she was assigned to promote had an indication appropriate for urologists and she decided to “pick ten urologists and start calling on them.” This strategy resulted in the antibiotic becoming “a number one product” for her.

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Bluebook (online)
558 F. Supp. 2d 459, 13 Wage & Hour Cas.2d (BNA) 1392, 2008 U.S. Dist. LEXIS 43681, 2008 WL 2309165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amendola-v-bristol-myers-squibb-co-nysd-2008.