Posts Tagged ‘Pharmaceutical Sales’
Employment and FLSA Litigation - Tuesday, July 3, 2012 14:54 - 0 Comments
The U.S. Supreme Court ruled last month that pharmaceutical sales representatives are not subject to the overtime pay specified in the Fair Labor Standards Act. In a 5-4 decision, the court ruled in Christopher v. SmithKline Beecham Corp. that the employers of pharmaceutical representatives aren’t obligated to pay time-and-a-half wages if the sales reps work more than 40 hours a week. The FLSA established minimum wages and maximum work hours for employers and their workers, but specified that these requirements don’t apply to those working “in the capacity of an outside salesman.”
The Court said the sales representatives, Michael Christopher and Frank Buchanan, who were hired at SmithKline Beecham Corp. in 2003, qualified as outside salesmen in their work. Their work, according to the Court, included obtaining commitments from physicians to prescribe prescription medications. The Court’s majority found that the petitioners fit the description in other ways, too:
• they were hired on the basis of their sales experience;
• they worked outside an office with minimal supervision; and
• they were awarded “incentive pay” — an uncapped amount that was based on their sales in assigned territories — on top of their base salary.
Justice Samuel Alito noted in the majority opinion that the FLSA exempted outside salesmen from overtime pay because they “typically earned salaries well above the minimum wage” and received other benefits. Justice Alito wrote for the majority in the opinion:
Petitioners — each of whom earned an average of more than $70,000 per year … are hardly the kind of employees that the FLSA was intended to protect. And it would be challenging, to say the least, for pharmaceutical companies to compensate detailers for overtime going forward without significantly changing the nature of that position.
In the dissenting opinion, Justice Stephen Breyer said pharmaceutical representatives don’t qualify as outside salesmen because they “do not promote their ‘own sales’ but, rather, ‘sales made, or to be made, by someone else.’” That surely makes sense, but apparently it didn’t bother the Justices in the majority.
- Jere Beasley Report, April 2013
- Marc McHenry Hired As Investigator
- Alabama to Receive $1,039,078 in Multi-State Settlement
- COSTCO Recalls Gold Coast Crab Dip
- Major Banks Assist In Payday Loans Banned By States
- We Have Allowed A Culture Of Violence To Be Created In The U.S.
- Parting Words
- Closing Observations
- Favorite Bible Verses
- WSFA News Defenders Interviews
- Beasley Allen Hosts The Child Safety Helmet Giveaway
- SPLC Looks At How Payday And Title Loans Prey On Alabama’s Poorest
- Employee Spotlights
- Natura Pet Expands Recall Of Dry Pet Foods
- Winn-Dixie Recalls Organic Apple Juice On Mold Fears
- Manda Packing Recalling 468,000 Pounds Of Meat
- Carter’s Recalls Infant Clothings With Zippers Due To Choking Hazard
- Same as above, with all the nightmares. I was Modifying with Wells Fargo and i s...
- I am shocked to see what I am reading - but not surprised. I installed Certain...
- I work as a store manager and i work 60 to ninety hours a weeks please tell me s...
- I wondered why i couldn't find him on the DPS website.
Tell Marc to contact me...
- I want to be involved in this lawsuit. I was a 3rd key making $8.25 per hour wi...
- Great to find a site like this that informs us of what our tax dollars are payin...
- can you please emaik me a copy of your article on april 16th wells fargo suid f...
- ALL OF THESE STORIES ARE SIMILAR AND ALMOAT THE SAME IN TIME FRAMES. FOR TWO YEA...