A federal appeals court has upheld a lower court’s decision against F.W. Webb Co., a plumbing supply distributor, ruling that the company improperly classified its inside sales representatives (ISRs) as exempt from overtime pay. The U.S. Department of Labor sued Webb in 2020 for violating the Fair Labor Standards Act, which resulted in an order for Webb to pay $4.2 million in back wages to over 700 sales employees. The court determined that the primary duties of the ISRs involved generating sales, which does not fit the criteria for the administrative exemption claimed by Webb. Although Webb sought a rehearing, the appeals court denied this request, solidifying the earlier judgment.
