The remainder of the settlement will be distributed among approximately 585 sales specialists who were affected by Teva’s classification of them as overtime-exempt during the company’s four-week training period. Each worker will receive roughly $4,600 for the unpaid overtime they missed during this period.
Training Program and Lawsuit Background
Kushelowitz and Baldwin filed their lawsuit against Teva in December 2022, claiming that the company’s training program for sales specialists required them to work more than 40 hours a week without receiving proper overtime compensation. They alleged that, in addition to regular training, they were expected to complete training exams and study coursework, all while being classified as exempt from overtime.
Teva attempted to dismiss the suit in January 2023, arguing that their sales specialists qualified for exemptions under the FLSA and NYLL for itinerant salespeople. However, Judge Wigenton denied Teva’s motion in June 2023, finding that the workers sufficiently showed they were not primarily engaged in exempt activities during their training.
Legal Exemptions Under Scrutiny
Judge Wigenton emphasized that both federal and state labor laws focus on the actual duties of workers, rather than their job titles, when determining eligibility for overtime pay. While sales specialists might eventually be classified as exempt once in the field, the judge found that the tasks performed during the training—coursework, study, and exams—did not meet the criteria for an overtime exemption.
