Christopher v. SmithKline Beecham Corp.

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Christopher v. SmithKline Beecham Corp.
Argued April 16, 2012
Decided June 18, 2012
Full case nameMichael Shane Christopher, et al., Petitioners v. Smithkline Beecham Corporation dba GlaxoSmithKline
Docket no.11-204
Citations567 U.S. 142 (more)
132 S. Ct. 2156; 183 L. Ed. 2d 153; 2012 U.S. LEXIS 4657; 19 WH Cases 2d 257; 80 U.S.L.W. 4463
Case history
PriorSummary judgement granted to Glaxo, No. CV-08-1498-PHX-FJM (D. Ariz. 2009); affirmed, 635 F.3d 383 (9th Cir. 2011); cert. granted, 565 U.S. 1057 (2011).
Holding
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.
Court membership
Chief Justice
John Roberts
Associate Justices
Antonin Scalia · Anthony Kennedy
Clarence Thomas · Ruth Bader Ginsburg
Stephen Breyer · Samuel Alito
Sonia Sotomayor · Elena Kagan
Case opinions
MajorityAlito, joined by Roberts, Scalia, Kennedy, Thomas
DissentBreyer, joined by Ginsburg, Sotomayor, Kagan
Laws applied
The Fair Labor Standards Act of 1938; 29 U.S.C. §§ 206-207 (2006 ed. and Supp. IV); 29 U.S.C. § 213(a)(1)

Christopher v. SmithKline Beecham Corp., 567 U.S. 142 (2012), is a US labor law case of the United States Supreme Court.[1] It held that pharmaceutical sales representatives were not eligible for overtime pay.[2] The court ruled in a majority opinion written by Justice Samuel Alito that sales representatives were classified as "outside salesmen" who are exempt from the Department of Labor's regulations regarding overtime pay.[3]

Facts

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]

The United States District Court for the District of Arizona granted a judgment in favor of GlaxoSmithKline. After the Department of Labor filed an amicus in a related case in the Second Circuit, they appealed to the United States Court of Appeals for the Ninth Circuit in California, which affirmed the lower court's decision.[8][9][10] The plaintiffs then appealed to the Supreme Court.[2]

Judgment

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.

See also

References

  1. ^ Christopher v. SmithKline Beecham Corp., 567 U.S. 142 (2012).
  2. ^ a b Greenwald, Judy (December 4, 2011). "Supreme Court to rule on pharmaceutical sales overtime pay". Business Insider. Retrieved December 28, 2012.
  3. ^ "Christopher v. SmithKline Beecham Corp". scotusblog.com. SCOTUS Blog. Retrieved December 28, 2012.
  4. ^ 29 U.S.C. § 207(a).
  5. ^ a b 29 U.S.C. § 213(a).
  6. ^ 29 CFR 541.500.
  7. ^ Todd, Susan (June 18, 2012). "U.S. Supreme Court rules against drug sales reps in overtime pay challenge". The Star-Ledger. Retrieved December 28, 2012.
  8. ^ Christopher v. SmithKline Beecham Corp., 635 F.3d 383 (9th Cir. 2011).
  9. ^ Weiczorek, Sam (April 5, 2012). "Argument preview: The "outside salesman" exception to the FLSA's overtime-pay requirement". SCOTUS Blog. Retrieved December 29, 2012.
  10. ^ Vicini, James (June 18, 2012). "U.S. top court rules for Glaxo on overtime pay". Chicago Tribune. Retrieved December 29, 2012.

External links