With an emphasis on practical strategies to improve productivity and performance, and limit potential liabilities, Bulletin to Management™ concisely analyzes new developments in employment and...
By Kevin P. McGowan
The U.S. Supreme Court Nov. 28 agreed to consider whether the Fair Labor Standards Act's outside sales exemption covers drug sales representatives who visit doctors to encourage them to prescribe their employer's prescription drugs (Christopher v. SmithKlineBeecham Corp. d/b/a GlaxoSmithKline, U.S., No. 11-204, cert. granted11/28/11).
The court will review a February 2011 decision by the U.S. Court of Appeals for the Ninth Circuit, which held that the FLSA's outside sales exemption barred the claims of a proposed class of drug sales representatives for GlaxoSmithKline (635 F.3d 383, 17 WH Cases2d 353 (9th Cir. 2011).
The appeals court declined to defer to the Labor Department's position, stated in an amicus brief, that the exemption did not cover the drug sales representatives because their job was to promote their company's drugs, not to make final sales (61 BTM 267, 8/24/10).
The Second Circuit in July 2010 had reached the opposite conclusion, holding that drug sales representatives for Novartis Pharmaceuticals Corp. and Schering Corp. were not FLSA-exempt and could pursue overtime claims under the federal wage and hour law (611 F.3d 141, 16 WH Cases2d 481 (2d Cir. 2010).
The Supreme Court earlier this year denied Novartis's and Schering's petitions to review the Second Circuit decision.
In their petition for review, two sales representatives urged the Supreme Court to resolve the circuit split on the scope of the FLSA's outside sales exemption. They also urged the justices to address what deference federal courts owe to the secretary of labor's interpretations of the FLSA.
SmithKline did not oppose review, but rather agreed with the petitioners that the Supreme Court should clear up the “confusion and uncertainty” among the lower federal courts on whether the FLSA exemption applies to pharmaceutical sales representatives.
By Kevin P. McGowan
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)