The Fair Labor Standards Act (FLSA) requires overtime pay for those working more than 40 hours unless they are “exempt employees.” At car dealerships, this includes “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements,” but the DOL tried to make service advisors (those consulting with customers about servicing needs) non-exempt; traditionally they’ve also been exempt. The U.S. Supreme Court, in a 5-4 decision, said that a service advisor continues to be an exempt employee because this person is “obviously a salesman.” The court said there’s no basis for the DOL to construe exemptions narrowly.
New blog post today! Are You Confused by the Tax Cuts and Jobs Act?
