U.S. Supreme Court Debates Status of Pharma Sales Reps


The article discusses a lawsuit filed against GlaxoSmithKline Inc. and the far-reaching effects if the U.S. Supreme Court were to side with the Department of Labor and determine that pharma sales reps are not outside salespeople and are therefore subject to overtime pay under the Federal Labor Standards Act.

Littler’s Lee Schreter commented that a ruling for the sales reps would have many in the industry rethinking their sales rep model at a time when some drugmakers are already downsizing their sales force. But perhaps more troubling for the industry, judging by the amicus briefs, is DOL's backdoor rulemaking, which fosters a "gotcha approach.”

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