Supreme Court Ruling on FLSA Exemption for Outside Sales Persons

April 3, 2012 — 2,130 views  
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The United States Supreme Court is the last line of defense for those embroiled in legal arguments and exhaustive legislation. The justices on this council of nine are experts in all aspects of U.S. law and statutes, and they recently ruled on an exemption in the Fair Labor Standards Act (FLSA).

The FLSA is an element of federal legislation that defines and mandates the standard minimum wage and overtime compensation for certain employees. These can be anyone from line chefs to grocery store cashiers. However, certain workers are exempt from these laws when the following conditions are met.

The Supreme Court ruled that the employee in question must be making FLSA-defined sales or obtaining contracts or facilities for a respective employee to be considered exempt. Furthermore, this worker must be regularly on the move and rarely in the employer's place of business.

This matter stemmed from a case in the pharmaceutical industry when travelling representatives sued for back pay and wrongful employment practices. They claimed that because they were not actually selling the product and were merely raising brand awareness, they deserved to be paid overtime for long hours. The 90,000 people represented in this class-action suit could be receiving billions of dollars if the U.S. Supreme Court rules in their favor.