Sales Representatives of Medical Device Company to Receive $7.4M To End Misclass Suit

Sales Representatives of a medical device manufacturer, Zimmer Biomet, have reached a settlement that will resolve claims that their employer misclassified them as independent contractors. These claims ofmisclassification were brought under the Fair Labor Standards Act (“FLSA”) and will be settled in the $7.4 million payout. More than 250 current and former sales representatives will benefit from this agreement.

This lawsuit, which was initiated back in July of 2018, alleged that due to the extensive control thatZimmer Biomet had over its sales representatives, they should have been classified as employees of the company instead of independent contractors. This would have allowed sales reps to have benefits such as overtime pay and insurance. However, because they were classified as independent contractors they were never paid for all of their hours worked over 40 per work week, denied meal and rest periods, and had to pay significant out of pocket expenses such as insurance, gas, travel expenses and phone data. The lawsuit alleged that they should have had employee status under the FLSA due to claims thatZimmer Biomet’s determined the sales representatives’ inventory and pricing as well as schedules which often required them to be on call 24/7 forcing them to exclusively work for this company.

Sales representatives in this industry are often misclassified as independent contractors when they should be receiving all of the benefits of a full-time employee. If you’ve worked in a similar position in the last few years and have any questions or concerns about your pay, it could be beneficial to speak to an employment attorney to see you if you may have any claims for owed wages. Our firm, Fitapelli and Schaffer, LLP, offers a free and confidential phone consultation. You can reach us at (212) 300-0375 or visit our website here for additional helpful information regarding your rights.