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U.S.S.C.: Court Grants Certiorari to PSRs on Appeal of 9th Circuit Decision Holding Pharma Reps Exempt Under the FLSA’s Outside Sales Exemption
Christopher v. SmithKline Beecham Corp.
In a case with far sweeping ramifications for the pharmaceutical industry and its employees, the Supreme Court has granted certiorari to revisit the Ninth Circuit’s decision that held pharmaceutical representatives (pharma reps) to be exempt under the FLSA’s outside sales exemption, and therefore, entitled to overtime. The Supreme Court has granted Plaintiff’s Petition for Cert, and therefore the issue remains largely unresolved. In a decision discussed here, the Second Circuit had previously held that the pharma reps were non-exempt, notwithstanding the pharmaceutical companies’ arguments that they were outside sales and/or administrative exempt. While, the Third Circuit agreed that pharma reps were not outside salespeople because they did not complete any sales, in several cases, it has reached the conclusion that pharma reps are exempt under the administrative exemption. Most recently, the Ninth Circuit held that, notwithstanding the fact that pharma reps cannot and do not consummate sales, their promotional activities are close enough to render them exempt under the outside sales exemption. The Supreme Court has now granted cert in the Ninth Circuit case to potentially resolve the issue.
The Department of Labor had submitted an Amicus Brief in support of the employees in both the Second and Ninth Circuit cases. While the Second Circuit relied on the DOL’s Brief in large part, reaching its conclusion that the pharma reps are non-exempt, the Ninth Circuit rejected the arguments in the Brief. Now, the stage is set for the Supreme Court to resolve the conflict between the circuits once and for all.
The 2 certified issues the Supreme Court is set to hear are:
(1) Whether deference is owed to the Secretary of Labor’s interpretation of the Fair Labor Standards Act’s outside sales exemption and related regulations; and (2) whether the Fair Labor Standards Act’s outside sales exemption applies to pharmaceutical sales representatives.
Visit the scotusblog to read the full decision below as well as the parties’ briefings to date in Christopher v. SmithKline Beecham Corp.
Supreme Court Agrees To Decide Whether A Verbal Complaint To An Employer Is Sufficient To Trigger FLSA Anti-Retaliation Protections
Kasten v. Saint-Gobain Performance Plastics Corp.
The Supreme Court has granted certiorari to decide whether the question:
“Is an oral complaint of a violation of the Fair Labor Standards Act protected conduct under the anti-retaliation provision, 29 U.S.C. § 215(a)(3)?”
In a decision discussed here, the 7th Circuit previously held that “any complaint” includes an employee’s internal complaint to his or her own company. However, the Court also held that an employee who complains verbally, not in writing, has not engaged in statutorily protected activity, so he or she is not protected by the FLSA’s anti-retaliation provision.
Following the decision, the Plaintiff sought a rehearing en banc. In the decision denying a rehearing en banc, three 7th Circuit judges dissented. The dissenting judges noted that the 7th Circuit was the only Circuit to construe the definition of protected activity so narrowly. Now the Supreme Court will decide whether they were right, or whether the remedial nature of the FLSA supports protection from retaliation for those who make verbal complaints, but not complaints in writing.