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ARTICLE · 19 JUNE 2012

Supreme Court Decision Alert - June 18, 2012

Mayer Brown
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Today the Supreme Court issued one decision, described below, of interest to the business community.

United StatesLitigation, Mediation & Arbitration
Andrew Tauber
Andrew Tauber
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Keywords: FLSA, Fair Labor Standards Act, outside-sales exemption, overtime

Today the Supreme Court issued one decision, described below, of interest to the business community.

Fair Labor Standards Act—Outside-Sales Exemption to Overtime Pay Requirements

Christopher v. Smithkline Beecham Corp. , No. 11-204 (previously discussed in the November 28, 2011 Docket Report).

The outside-sales exemption of the Fair Labor Standards Act ("FLSA") provides that an individual who is employed "in the capacity of outside salesman" is not entitled to overtime pay. See 29 U.S.C. § 207(a)(1); 29 U.S.C. § 213(a)(1). The application of this exemption to pharmaceutical sales representatives ("PSRs") has divided the courts of appeals, and spawned several interpretations by the Department of Labor via amicus briefs. Today, in Christopher v. Smithkline Beecham Corp., No. 11-204, the Supreme Court resolved this dispute in a 5-4 decision, holding that PSRs "qualify as outside

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