This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
Background and question before the Court
Counsel for the petitioners was Thomas C. Goldstein; the United States, represented by Deputy Solicitor General Malcolm L. Stewart, appeared as amicus supporting the petitioners; and respondent counsel was Paul D. Clement.
Petitioners obtained summary judgment in their favor on the outside sales exemption.
What each side argues
Petitioners
Petitioners argue that the Fair Labor Standards Act directs the Secretary of Labor to “define and delimit” the outside salesman exemption, and that the regulation defines an outside salesman as one who makes sales rather than merely promotes sales.
Respondent
Source-limited. The record does not yet support a complete account.
What happened at oral argument
Justice Alito asked whether the government’s argument that an employee must actually transfer title to the property to be considered making a sale is consistent with the statute.
Justice Alito asked whether the employees work on commissions.
According to Justice Scalia, justice Scalia stated that there is no agreement for transfer of title and explained that a consignment involves giving the property to someone who will sell it.
Justice Scalia asked whether detailers existed in 1940.
Justice Breyer asked whether the employees are paid commissions.
Justice Sotomayor asked how a bonus differs from a commission.
Justice Kagan asked whether the requirement is a transaction rather than merely advertising or pitching.
Justice Ginsburg asked whether the pharmaceutical company has a sales force that sells to wholesalers, pharmacies, and hospitals.
According to Justice Breyer, justice Breyer invited further discussion of the issue.
- [1] 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdf, p. 4
- [2] 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdf, p. 22
- [3] 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdf, p. 6
- [4] 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdf, p. 22
- [5] 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdf, p. 44
- [6] 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdf, p. 45
- [7] 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdf, p. 46
- [8] 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdf, p. 52
- [9] 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdf, p. 59
What the Court decided
Why it matters
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- 5e354a9f9cc38e8ed72a-r1-57f0f655739db3c5.pdforal argument transcript
Guide generated September 24, 2026. Automated validation accepted this version.