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The U.S. Supreme Court held yesterday that service advisors at car dealerships are exempt from the overtime requirements of the Fair Labor Standards Act. In a 4-5 decision written by Justice Thomas, Encino Motorcars, LLC v. Navarro involves an exemption from the FLSA’s overtime requirements for employees at car dealerships, an exemption that has waxed and waned for much of the 80 years since Congress first enacted the statute. The problem began in 1961, when Congress amended the FLSA to exempt all employees at car dealerships. Five years later, though, Congress narrowed the exemption, limiting it. The coverage of service advisors was disputed from the beginning – as they certainly are not “partsmen,” and also do not seem to be salesmen selling automobiles or mechanics servicing them. Ultimately, the Court decided that the service advisors did not qualify for overtime compensation.

The Court’s full decision is available at this link: https://www.supremecourt.gov/opinions/17pdf/16-1362_gfbh.pdf