Perspective
Aug. 7, 2012
SmithKline: pharmaceutical sales reps exempt from overtime pay
The Supreme Court's decision rejects the general rule of agency deference. By Shawn Khorrami and Corina Valderrama of Khorrami LLP
On June 18, the U.S. Supreme Court ruled that SmithKline pharmaceutical sales representatives (PSRs) are exempt from overtime pay. In applying the federal exemption standard to the overtime requirement, the decision clarifies a split among several circuits and relies heavily on the unique circumstances of PSRs. Nonetheless, the decision does not impact the California outside sales exemption, which provides employ...
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