The U.S. Supreme Court just issued its much-anticipated ruling in Christopher v. SmithKline Beecham, ruling 5-4 that pharmaceutical sales reps are exempt from overtime under the FLSA outside sales exemption.
The Decision In 100 Words or Less
The ruling is considered a major victory for pharmaceutical employers. In short, the Court found that the Department of Labor’s arguments were “flatly inconsistent” with the statute itself. As a result, pharma employers weren’t on “clear notice” of potential violations and the DOL’s enforcement was an “unfair surprise.”
What Does It Mean For Non-pharma Employers?
While the ruling basically only applies to pharma companies, it could make the DOL think a bit longer and harder before taking other aggressive FLSA positions to court.
Click here to read the full 14-page opinion.