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Paul Millus Authors, "The Ever Expanding Scope of Wage and Hours Laws"

Jan 20, 2016Employment LawLitigation & Dispute Resolution

As any employment lawyer knows, there are a number exemptions within the FLSA. One of those applies to "salesman. " 29 U.S.C. section; 213(b)(10)(A) exempts "any salesman, parts man or mechanic primarily engaged in selling or servicing automobiles." This issue in now in the crosshairs of the Supreme Court which granted certiorari to the employer on January 15 2016 in the matter of Encino Motorcars LLC v. Hector Navarro. In the case below, the Ninth Circuit held that "service advisors" who work at a car dealership are not exempt from the overtime pay requirements of the FLSA disagreeing with the Fourth and Fifth Circuits. With FLSA exemptions normally construed narrowly, it is an interesting question whether "service advisors" who meet and greet customers in the service area of the dealership and then evaluate the service and repair needs of the vehicle fall within the exemption.