Pharma Sales Reps Not Entitled to Overtime: Supreme Court

Published: Jun 19, 2012

In a widely anticipated ruling, the US Supreme Court decided in a 5-to-4 vote that pharmaceutical sales reps are not entitled to overtime pay, an issue that plagued drugmakers as they attempt to cut costs and redefine the role played by sales teams. And in finding in favor of the industry, the court also unanimously rejected the position taken by the US Department of Labor, which has filed briefs in numerous cases supporting the notion that sales reps are entitled to overtime. The decision, however, has implications for many other industries as well, since the department has argued that the courts should defer to its interpretation of applicable statutes and rules.

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