In Christopher v. Smithkline Beecham Corp.,
132 S. Ct. 2156 (June 18, 2012), the U.S. Supreme Court held, in a 5-4
decision, that pharmaceutical companies are not required to pay
overtime to their sales representatives.
The key issue in the case was whether the pharmaceutical sales representatives fell within the Fair Labor Standards Act's ("FLSA") outside sales exemption. By law, pharmaceutical representatives cannot sell drugs. As a result, the sales representatives simply secure non-binding commitments from physicians to prescribe their companies' drugs in appropriate circumstances.
More on the U.S. Supreme Court's decision.
The key issue in the case was whether the pharmaceutical sales representatives fell within the Fair Labor Standards Act's ("FLSA") outside sales exemption. By law, pharmaceutical representatives cannot sell drugs. As a result, the sales representatives simply secure non-binding commitments from physicians to prescribe their companies' drugs in appropriate circumstances.
More on the U.S. Supreme Court's decision.
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