The U.S. Supreme Court held today that pharmaceutical sales representatives qualify as “outside salesmen” and, accordingly, are exempt from the overtime requirements of the federal Fair Labor Standards Act (FLSA). See Christopher v. SmithKline Beecham Corp. (No. 11-204, U.S. June 18, 2012). Importantly, the Court also refused to give controlling deference to the Department of Labor’s (DOL) change of position in interpreting the regulation to exclude these employees, which was first announced in amicus briefs filed in court litigation. The Court noted that where, as here, an agency’s announcement of its interpretation is preceded by a lengthy period of conspicuous inaction, “the potential for unfair surprise is acute.”
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