Executive Summary: On April 2, 2018, the U.S. Supreme Court ruled 5-4 in Encino Motorcars, LLC v. Navarro that service advisors at automotive dealerships are exempt from overtime. The exemption at issue involves βany salesman, partsman or mechanic primarily engaged in selling or servicing automobiles.β 29 U.S.C. 213 (b)(10). The Supreme Court reversed the Ninth U.S. Circuit Court of Appeals which had ruled that based on a plain reading of statutory text, principles of statutory interpretation (narrow construction of FLSA exemptions), and legislative history, the exemption does not encompass service advisors.
Home > Federal Law Articles > FLSA > Industries and Occupations > Supreme Court Rules that Service Advisors at Automotive Dealerships are Exempt from Overtime and Rejects Principle that Exemptions to FLSA Should be Construed Narrowly