A new decision by the Second Circuit Appeals Court contradicts earlier decisions stating that pharmaceutical sales representatives are not entitled to overtime pay under the Fair Labor Standards Act of 1938. The new decision, in which the court ruled to reinstate claims covering up to 2,500 Novartis drug reps who claim they are owed back pay, could propel the issue to the U.S. Supreme Court. "The Third Circuit in two cases … has issued two decisions that disagree with the Second Circuit in determining the administrative exemption applied to pharmaceutical salespersons," said John B. Langel, chair of the Labor and Employment Group at Ballard Spahr. "Federal judges in Indiana and Arizona have ruled pharma salespeople are exempt … so right now we clearly have a split in the circuits."