Supreme Court rules in favor of pharmaceutical in overtime pay case
The Supreme Court ruled
that sales representatives
at pharmaceuticals are not
eligible for overtime pay.
Often, businesses may be accused by their employees of not providing full payments, such as with professionals that have worked overtime hours. Companies in such situations may need to speak to a Chicago labor lawyer in order to defend their company.
On June 18, the U.S. Supreme Court ruled that pharmaceutical companies are not liable for paying representatives overtime when such employees visit doctors' offices after-hours to promote products.
In a 5-4 vote, the highest court system in the country defeated a lawsuit by two former representatives accusing the GlaxoSmithKline Plc company of not providing full payment, according to Reuters.
This ruling followed a previous decision made by the 2nd U.S. Circuit Court of Appeals in New York that found the representatives eligible for overtime pay. Clearly, the appeal with the Supreme Court was in favor of the pharmaceutical company.
"PhRMA strongly supports the Supreme Court's decision," the Pharmaceutical Research and Manufacturers of America trade group said in a statement. "The Supreme Court's opinion is consistent with the arguments advanced in our amicus brief and with the longstanding sales practices of our member companies."
In May, a similar lawsuit also ended with the court finding the pharmaceutical company not liable for overtime pay. The U.S. Court of Appeals for the 7th Circuit found pharmaceutical sales representatives at Eli Lilly and Abbott Laboratories not entitled for payment past an agreed-upon salary.
However, drug manufacturer Novartis agreed to settle a similar claim this January for $99 million. This may be due to the original decision by the 2nd U.S. Circuit Court that found the plaintiffs eligible for overtime pay.
Companies and other organizations in Illinois that have been accused of improper conduct by employees, much like these pharmaceuticals, may need to speak with a Chicago labor lawyer