In Navarro v. Encino Motorcars, the 9th Circuit Court of Appeals held that automobile dealerships must pay service advisors – employees whose job responsibilities include evaluating the repair and maintenance needs of customers’ cars and writing estimates – overtime compensation in accordance with the Fair Labor Standards Act (FLSA). In contrast, automobile dealers are not required to pay employees engaged in selling or servicing automobiles, such as salesmen and mechanics, for overtime because they are subject to an exemption carved out in section 213(b)(10)(A) of the FLSA.

A year later the Supreme Court overturned the 9th Circuit decision, holding that the exemption in section 213(b)(10)(A) of the FLSA also applies to service advisors. Therefore, automobile dealerships are not required to pay salesmen, mechanics, or service advisors overtime compensation.

For more information, or if you need legal assistance, please contact the Wagner Legal Group, P.C. at (310) 857-5293 or fill out our contact form on the website.