Wage and Hour Defense Blog

Wage and Hour Defense Blog

Category Archives: Outside Sales Exemption

Subscribe to Outside Sales Exemption RSS Feed

U.S. Supreme Court Grants Review of the “Outside Sales” Exemption Found Applicable to Pharmaceutical Sales Representatives

By David Garland and Douglas Weiner

In February 2011, the U.S. Court of Appeals for the Ninth Circuit gave a resounding victory to employers in the pharmaceutical industry by finding that pharmaceutical sales representatives are covered by the outside sales exemption of the Fair Labor Standards Act (“FLSA”). Christopher v. SmithKline Beecham, No. 10-15257 (9th Cir. Feb. 14, 2011). Plaintiffs, and the U.S. Department of Labor (“DOL”) in an amicus brief, had argued the exemption did not apply because sales reps are prohibited from making the final sale. Prescription medicine in the heavily regulated pharmaceutical industry can only be sold to the … Continue Reading

Ninth Circuit Holds That Pharmaceutical Sales Representatives Are Covered

By Michael S. Kun, David W. Garland, Douglas Weiner

The Ninth Circuit Court of Appeals has become the latest Circuit Court to weigh in on the subject of whether pharmaceutical sales representatives are covered by the FLSA outside sales exemption.  The result, in Christopher v. SmithKline Beecham, No. 10-15257 (9th Cir. Feb. 14, 2011), is a resounding victory for employers in the pharmaceutical industry.

The plaintiffs and the Secretary of Labor argued, among other things, that sales representatives in fact do not make sales at all, which places them outside the bounds of the outside sales … Continue Reading

Marketing Executive is Exempt Outside Salesperson Under FLSA, Says Eleventh Circuit

In an important decision that explains the distinction between promoting and making sales, the Eleventh Circuit held recently that a marketing executive was exempt from the overtime and minimum wage provisions of the Fair Labor Standards Act as an outside salesperson. The case is Gregory v. First Title of America, Inc., Case No. 08-10737 (11th Cir., January 27, 2009).

Before addressing the facts of the case and the Eleventh Circuit’s holding, let’s review the applicable statute and regulations. The FLSA includes several exemptions from its minimum wage and overtime requirements, including any employee employed in the capacity of an … Continue Reading

.
Lexblog