Baum v. ASTRAZENECA LP

605 F. Supp. 2d 669, 2009 U.S. Dist. LEXIS 28969, 2009 WL 827920
CourtDistrict Court, W.D. Pennsylvania
DecidedMarch 31, 2009
Docket2:07-cr-00090
StatusPublished
Cited by7 cases

This text of 605 F. Supp. 2d 669 (Baum v. ASTRAZENECA LP) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baum v. ASTRAZENECA LP, 605 F. Supp. 2d 669, 2009 U.S. Dist. LEXIS 28969, 2009 WL 827920 (W.D. Pa. 2009).

Opinion

MEMORANDUM OPINION and ORDER

KIM R. GIBSON, District Judge.

Plaintiff Kristin Baum seeks damages from Defendant AstraZeneca LP for alleged violations of Pennsylvania law that requires overtime pay for non-exempt employees. Ms. Baum, a pharmaceutical sales representative, argues that AstraZeneca improperly treated her position as exempt from Pennsylvania’s wage and hour laws. AstraZeneca disagrees, arguing that the job tasks performed by Ms. Baum fall within the statutory exemption for outside sales work. In addition to seeking resolution of her own claim, Ms. Baum also seeks to act as representative for a class of individuals whom she alleges are similarly situated.

This matter comes before the Court on Defendant AstraZeneca LP’s “Motion for Summary Judgment Seeking Dismissal With Prejudice of Plaintiff Baum’s Claims” (Doc. No. 52). AstraZeneca asserts three grounds for why it should be granted summary judgment: first, that Ms. Baum is exempt from the overtime pay regulations under the outside salesperson exemption; second, in the alternative, that Ms. Baum is exempt from the overtime pay regulations under the administrative exemption; and third, also alternatively, that Ms. Baum’s claims are preempted by federal law. Ms. Baum disputes each of these grounds, arguing that AstraZeneca’s Mo *671 tion must be denied because she did not sell anything for AstraZeneca, her duties do not qualify her for the administrative exemption, and that preemption is not appropriate. Ms. Baum asserts that since she should not have been classified as exempt, and because she frequently worked more than 40 hours per week, she is entitled to appropriate back-pay damages.

For the reasons set forth below, Defendant’s Motion for Summary Judgment is granted, and the remaining pending motions in this matter (Doc. Nos. 19, 49, and 69) are accordingly denied as moot.

I. PROCEDURAL HISTORY AND FACTUAL BACKGROUND 1

On March 27, 2007, Plaintiff Baum filed a lawsuit in the Court of Common Pleas of Westmoreland County, Pennsylvania. On April 20, 2009, AstraZeneca removed the action to this Court. The Court has jurisdiction over the claims in this matter pursuant to 28 U.S.C. §§ 1332,1441, and 1446. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(a)(2). While both parties have filed numerous other pretrial motions, the Court now considers AstraZeneca’s Motion for Summary Judgment.

AstraZeneca researches, develops, manufactures, and sells pharmaceuticals. Doc. Nos. 53 and 63, ¶ 1. AstraZeneca employs numerous individuals carrying the title “Pharmaceutical Sales Specialist” (hereinafter “PSS”). Id. ¶ 2. AstraZeneca hired Ms. Baum on April 13, 1998. Id. ¶ 3. Ms. Baum worked in various non-sales positions during her first four years with AstraZeneca. Id. ¶4. Having initially pursued the PSS position because she “always wanted to be in sales,” Ms. Baum worked as a PSS from May 1, 2003 to November 1, 2006. Id. ¶ 5. She worked first on AstraZeneca’s respiratory team and later on the cardiovascular team. Id. ¶ 7. Working with a small team of other PSS’s, Ms. Baum was responsible for numerous AstraZeneca pharmaceuticals. Id. ¶¶ 8-9.

AstraZeneca provided Ms. Baum with training on its products and selling philosophy, known as “Interactive Strategic Selling” (“ISS”). Id. ¶¶ 10-11. Ms. Baum generally followed the ISS model in interacting with physicians. Id. ¶ 12. As part of Ms. Baum’s initial training, she engaged in role-playing to simulate future interactions with physicians; furthermore, she initially received field training by accompanying more experienced PSS’s. Id. ¶¶ 13-14. Ms. Baum also received ongoing computer-based product training. Id. ¶ 15.

Because her job required fluency in the sophisticated vocabulary and processes of pharmaceuticals and drug delivery, including an understanding of medical terms, disease states and drug pathways, Ms. Baum enrolled in outside classes to obtain additional relevant knowledge. Id. ¶¶ lb-17. She exerted substantial efforts to learn about pharmaceuticals, because she “need[ed] to know [her] products inside and out.” Id. ¶ 17. Ms. Baum once gave a training presentation at an AstraZeneca district meeting about a clinical study involving Crestor. Id. ¶ 18.

Ms. Baum’s purpose in her job as a PSS was to increase AstraZeneca’s market share “through personal selling” to physicians. Id. ¶ 19. In 2006, during a time period in which Ms. Baum worked as a PSS, one computational measure for AstraZeneca’s market share for Crestor in *672 creased by three percent. Id. ¶ 20. Ms. Baum spent- the “vast majority” of each work day in the field, making calls upon physicians. Id. ¶ 21. Ms. Baum and AstraZeneca referred to physicians as “customers.” Id. ¶ 23.

Ms. Baum used her skills and abilities in creative manners to gain access to busy physicians and build relationships with them. Id. ¶¶ 24-25. She frequently scheduled sponsored meals, termed “access meals”, which were used to build relationships with physicians and promote AstraZeneca’s products. Id. ¶¶ 24-28. Both access meals and typical in-office sales calls varied in length, depending upon the circumstances. Id. ¶¶ 29-30. Generally, Ms. Baum’s in-office sales calls were quite short. Id. ¶ 30. She testified that she had “good access” to doctors. Id. ¶ 31.

Ms. Baum utilized AstraZeneca’s ISS selling model with audience physicians, and adjusted her technique depending on the particular physician. Id. ¶ 32. Portions of Ms. Baum’s pitches were based upon scripts provided by AstraZeneca, and certain physician questions passed through her to be answered by AstraZeneca’s central office. Id. ¶¶ 32-36. Ms. Baum conducted various methods of self-critique in order to improve her efforts. Id. She also used a variety of personal relations tactics, including providing food, coupons and samples. Id. Ms. Baum’s ultimate purpose in visiting the physician was to convey the strengths of AstraZeneca’s products and persuade physicians to write prescriptions for AstraZeneca products. Id. ¶¶ 36-37. As part of this central purpose, she typically concluded her meetings with physicians by directly asking them for commitments to write prescriptions for AstraZeneca products in appropriate circumstances. Id. ¶¶ 38-39.

Ms. Baum utilized various AstraZenecaapproved sales aids while calling upon physicians, including core visual aids, clinical studies, and package inserts. Id. ¶41.

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Bluebook (online)
605 F. Supp. 2d 669, 2009 U.S. Dist. LEXIS 28969, 2009 WL 827920, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baum-v-astrazeneca-lp-pawd-2009.