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Supreme Court: No overtime pay for pharmaceutical sales reps
Under the Fair Labor Standards Act, a company must pay overtime to non-exempt employees who work over 40 hours in a particular workweek. Non-exempt, huh? That implies that the FLSA also contains various exemptions from overtime pay for employees who meet those requirements. Indeed it does. One of those exemptions is called the “outside sales” exemption. To qualify for the outside sales employee exemption, all of the following tests must be met:
- The employee’s primary duty must be making sales (as defined in the FLSA); and
- The employee must be customarily and regularly engaged away from the employer’s place or places of business.
The pharmaceutical industry is chock full of sales representatives whose job it is to go to doctors’ offices and convince physicians to place orders with drug makers. However, these sales reps never actually transfer title to the drugs. That is illegal in the drug industry.
So then, the question is, do these sales reps qualify for the FLSA’s outside sales exemption? Well, funny you should ask, because that’s what the Supreme Court decided yesterday (here). Details after the jump…
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