Decisions, Decisions; Who Decides if Pharmaceutical Sales Reps are Exempt?
There has been much debate over the last year and a half regarding pharmaceutical sales reps and their exemption status. In recent years the courts found that pharmaceutical sales reps were improperly classified as outside sales people and should be paid an hourly wage. Now the Supreme Court has reversed this decision stating that pharmaceutical reps can be classified as outsides sales people.
It was a close race in Christopher v. SmithKline Beecham; the court’s 5-4 decision was in favor of classifying pharmaceutical reps as outside sales people. Previously the Department of Labor (DOL), side kick of sorts of the judiciary branch, issued an opinion that stated pharmaceutical reps were only promoting specific drugs to doctors, not actually obtaining sales. The Court rejected the DOL’s interpretation, finding it was not supported by the statute.
It’s interesting to note that not all administrative opinions will be agreed with in the courts. For instance there was similar disagreement between the National Labor Relations Board and the Equal Employment Opportunity Commission on the matter of social media and background checking procedures. Two agencies, both advocating for employee rights, did not see eye to eye on these issues and have made contradicting decisions.
While these agencies do contribute to employment law, the courts do not always defer to their opinions on these matters. Because of this it is extremely important that companies and employees alike should consult with a labor law attorney prior to making any employment decisions based on previous rulings by any agency and some case law.
Labor law is complex; if you have any questions regarding your employment it is recommended that you contact a California labor law attorney who can help you understand your rights and in many cases will review your situation without charge.
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