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Christopher v. SmithKline Beecham Corp.
(U.S. Supreme Court)
Pharmaceutical salesmen qualify as "outside salesmen" and are exempt from overtime pay
The Supreme Court held July 18, 2012, that pharmaceutical “detailers” (as they are known in the industry) qualify as outside salesmen when they act to promote drugs to doctors, and are therefore exempt from requirements for overtime pay. The Department of Labor argued that the detailers were not actually salesmen (and therefore entitled to overtime pay) because they did not transfer title of the property, in this case the prescription drugs. The Court rejected this argument and found that the law at issue allowed transfers of title to be considered in qualifying salesmen, but it did not require it. The majority found unpersuasive the Department’s attempt to adopt its policy through a series of amicus briefs rather than using a more deliberate process involving public comment. Using the traditional tools for determining who is an outside salesman, the Court found considerable language in the Department’s regulations supporting its conclusion that these were outside salesmen.
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