Schaefer-LaRose v. Eli Lilly and Co.

663 F. Supp. 2d 674, 2009 U.S. Dist. LEXIS 97220, 2009 WL 3242111
CourtDistrict Court, S.D. Indiana
DecidedSeptember 29, 2009
Docket1:07-cv-1133-SEB-TAB
StatusPublished
Cited by6 cases

This text of 663 F. Supp. 2d 674 (Schaefer-LaRose v. Eli Lilly and Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schaefer-LaRose v. Eli Lilly and Co., 663 F. Supp. 2d 674, 2009 U.S. Dist. LEXIS 97220, 2009 WL 3242111 (S.D. Ind. 2009).

Opinion

ENTRY GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT AS TO PLAINTIFF SUSAN SCHAEFER-LAROSE

SARAH EVANS BARKER, District Judge.

This cause is before the Court on the Motion for Summary Judgment as to Plaintiff, Susan Schaefer-LaRose [Docket No. 68], filed by Defendant, Eli Lilly and Company (“Lilly”), on December 17, 2007, pursuant to Federal Rule of Civil Procedure 56. Plaintiff, Susan Schaefer-LaRose, brings her claim against Lilly, her former employer, alleging that Lilly failed to provide her with overtime compensation, in violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and New York wage law. Lilly rejoins that Ms. Schaefer-LaRose was exempt from the overtime pay provisions under both the FLSA and New York law.

On July 7, 2008, four days before the due date for her response to Lilly’s summary judgment motion, Ms. Schaefer-LaRose filed a Rule 56(f) motion [Docket No. 464], requesting that the Court grant her a 30-day extension of the due date because Lilly had allegedly failed to produce discovery essential to her response. However, on July 21, 2008, before the Court had ruled on her Rule 56(f) motion, Ms. Schaefer-LaRose filed her response in opposition to Lilly’s motion for summary judgment without mention of the pending Rule 56(f) motion. On August 8, 2008, the Magistrate Judge denied as moot Ms. Schaefer-LaRose’s Rule 56(f) motion [Docket No. 554] on the ground that she had filed a timely response to Lilly’s summary judgment motion. On August 28, 2008, Ms. Schaefer-LaRose filed objections to the Magistrate Judge’s August 8, 2008, order denying her Rule 56(f) motion [Docket No. 559], contending that her filing of her substantive response to Lilly’s motion for *678 summary judgment did not moot the need for Rule 56(f) relief. For the reasons detailed in this entry, we GRANT Defendant’s Motion for Summary Judgment 1 and DENY Plaintiffs Rule 56(f) motion. 2

Factual Background

Lilly is a global, research-based pharmaceutical company headquartered in Indianapolis, Indiana, that develops and manufactures pharmaceutical products. As part of its business, Lilly employs individuals as “sales representatives,” who are responsible for visiting physicians, informing them about Lilly pharmaceutical products and encouraging them to prescribe Lilly’s products to their patients, when and as appropriate. In May 1998, Lilly hired Ms. Schaefer-LaRose as a Sales Representative, which was the position she held until 2000, when she became a “Senior Sales Representative.” Deposition of Susan Schaefer-LaRose (“Schaefer-LaRose Dep.”) at 39. Lilly contends that this change constituted a promotion, but Ms. Schaefer-LaRose maintains that it was simply a change in job title, not a formal promotion. Id. at 41. However, Ms. Schaefer-LaRose testified in her deposition that her title changed in part because, by that point, she was better at dealing with physicians than the more junior representatives, having gained “accumulated knowledge from being with the company longer.” Id. at 43. Ms. Schaefer-LaRose remained a Senior Sales Representative until her tenure at Lilly ended in 2006.

Plaintiffs Sales Training and Duties

During her employment with Lilly, Ms. Schaefer-LaRose was responsible for calling on physicians throughout various territories in the State of New York, including areas around Syracuse, Binghamton, and Utica. Schaefer-LaRose Dep. at 47. Ms. Schaefer-LaRose received her initial training at a facility located in Indianapolis, where she was taught, among other skills, how to “detail” Lilly’s products to physicians to enable them to make educated decisions about which products would be best for their patients. Id. at 122-24. Lilly also trained Ms. Schaefer-LaRose in the “sales productivity processes,” which included four components (tiering, frequency, message, and program) that, according to Ms. Schaefer-LaRose, were all controlled by Lilly’s policies and procedures. Id. at 143-45. As part of that training, Ms. Schaefer-LaRose was instructed to “ask for business on every call” and to “ask the physician to commit to prescribe” Lilly products in their practices when medically appropriate; however, Lilly sales representatives never actually sold Lilly products to physicians or other buyers. Id. at 177. As a sales representative, 3 Ms. Schaefer-LaRose was required to become familiar with the pharmaceutical products *679 of Lilly’s competitors in order to understand the competitive market. Id. at 251. Her knowledge of such products was acquired through training and materials provided by Lilly. Id. at 250.

Ms. Schaefer-LaRose’s calls on physicians occurred in their offices and on each visit she would try to get a “chip,” which she describes as a “piece of information about what the physician said in a positive way about [Lilly’s] product” and use that information “to get a commitment” from the physician to prescribe Lilly’s pharmaceuticals. Id. at 182-83. With input from her district manager, Ms. Schaefer-LaRose would adjust her promotional efforts based on the prescribing habits of each doctor she visited. According to Lilly, Ms. Schaefer-LaRose had significant discretion to determine independently how frequently to visit various doctors based, in part, on the volume of prescriptions each physician wrote and was free to target her presentations based upon data she received on a weekly basis that showed which products each doctor was prescribing (including competitors’ products). Ms. Schaefer-LaRose disputes Lilly’s characterization of the level of discretion she was afforded and contends that Lilly produced “tiering” lists containing the names of specific physicians whom she was directed to visit. Id. at 66. Further, she asserts that she did not have the discretion to determine the frequency of visits to particular doctors or to target competitors’ products. Instead, Ms. Schaefer-LaRose maintains that Lilly instructed her on the frequency of her calls on any given physician, that her district manager had to approve her routing schedules, and that she had no role in determining which physicians or which products to target since company policy dictated those decisions. Id. at 94-96.

Ms. Schaefer-LaRose reportedly worked approximately ninety hours per week at Lilly, id. at 54, (including weekends, holidays, and vacation days, id. at 262-63), which often meant “[t]he end of the business day was midnight.” Id. at 150. Although she concedes that no one from Lilly ever told her how many hours she should work in any given week, Ms. Schaefer-LaRose asserts that “the demands that were made [by Lilly] required the hours that were spent [working].” Id. at 54. Throughout her tenure at Lilly, Ms.

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663 F. Supp. 2d 674, 2009 U.S. Dist. LEXIS 97220, 2009 WL 3242111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schaefer-larose-v-eli-lilly-and-co-insd-2009.