Resolving a split among U.S. circuit courts, the U.S. Supreme Court on June 18 held that pharmaceutical sales representatives at GlaxoSmithKline were exempt from overtime pay under the Fair Labor Standards Act’s exemption for outside salesmen. The court also held that deference was not owed to the U.S. Department of Labor’s interpretation of the exemption, which was favorable to employees.
The Supreme Court’s decision has dramatic, favorable implications for pharmaceutical industry employers who are facing overtime suits across the country from their sales representatives.
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