Monday, June 18, 2012

Supreme Court: GSK doesn't owe sales reps overtime


Drugmakers don’t have to pay overtime to their sales representatives, the U.S. Supreme Court ruled in a decision that saves the industry billions of dollars and marks a defeat for the Obama administration.

The justices, voting 5-4 in a case involving a GlaxoSmithKline (NYSE: GSK) unit, said pharmaceutical salespeople are exempt from a federal wage-and-hour law.

More than a dozen similar cases had been filed against drugmakers -- including Johnson & Johnson, Bristol-Myers Squibb Co. and units of Novartis AG and Merck & Co. -- by workers charged with persuading doctors to prescribe the company’s products. Business groups said billions of dollars were at stake.

Posted via email from Jack's posterous

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