The Department of Labor petitioned the Supreme Court to rule on whether or not the outside sales exemption that has been given to pharmaceutical sales representatives (PSRs) is allowable based on the type of sales that PSRs are involved in. The work of PSRs has been viewed as more promotional in nature, since the sale of pharmaceuticals to physicians is not directly providing the product to the end user. The Court issued a 5-4 decision, finding that the Fair Labor Standards Act’s outside sales exemption will continue to apply to all PSRs.
Due to the nature of the ruling, other matters currently being addressed by the Department of Labor will now be heavily reviewed. This ruling will also allow employers in all industries to classify more employees as outside sales, even if they are not directly providing services to the end user.
For additional information regarding this ruling, please click here.