The petitioners – pharmaceutical sales representatives whose primary duty is to obtain nonbinding commitments from physicians to prescribe their employer’s prescription drugs in appropriate cases – qualify as outside salesmen under the most reasonable interpretation of the Department of Labor’s regulations.
Michael Christopher and Frank Buchanan worked for GlaxoSmithKline, and claimed overtime pay under the Fair Labor Standards Act. They argued they were employees under 29 USC § 207(a),[4] while GSK contended they were acting ‘in the capacity of outside salesman’ under § 213(a).[5] In turn 29 C.F.R. § 541.500 defined ‘outside salesman’ as ‘any employee’ whose duty was ‘making sales’ under § 203(k) which said that included ‘any sale, exchange, contract to sell’ and so on.[6] Christopher and Buchanan were sales representatives for around four years from 2003, who marketed to physicians to buy the company's products. They spent 40 hours a week calling physicians, and another 10 to 20 hours attending events and performing other miscellaneous tasks. Their pay included a salary and bonus pay, based on performance in selling. In a class action lawsuit, they sought time and a half for over 40 hours work.[7]
Supreme Court held, by a five to four majority, that Christopher and Buchanan were not entitled to overtime pay under the Fair Labor Standards Act, because they were effecting sales within the Act's exception in § 213(a).[5] Justice Alito delivered the opinion of the court, in which Chief Justice Roberts, and Justices Scalia, Kennedy and Thomas joined.
Justice Breyer filed a dissenting opinion, in which Justices Ginsburg, Sotomayor and Kagan joined.