• Home
  • Our People
    • Christine Burns
    • David T. Barton
    • Alison Pulaski Carter
    • Alexandra Miller
    • Cecilia N. Nieto
  • Practice Areas
    • Employment Litigation
    • Employment Law Advice
    • Restrictive Covenants
    • Employment Contracts
    • Compliance
  • BurnsBarton Blog
  • Get Started
  • Contact and Directions

Ninth Circuit Takes a Different Road in Ruling that Automobile Service Advisors are Not Exempt

April 20, 2015
by David Barton
0 Comment

On March 24, 2015, the Ninth Circuit Court of Appeals held that automobile service advisors – those friendly faces that evaluate your car troubles and recommend services and repairs – are not exempt from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements under the industry-specific exemption available to automobile dealerships.

The FLSA exempts from its overtime requirements “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles.”   In the past, the U.S. Department of Labor had issued opinion letters and guidance confirming that this exemption made service advisors exempt.  But the Department issued new regulations in 2011 that limited the reach of this exemption to salesmen who sell automobiles, as opposed to salesmen who sell services.  Since then courts around the country (including the 4th and 5th Circuit Courts of Appeal) have generally disagreed with the Department’s 2011 regulations, finding them inconsistent with the statute.  As a result, most automobile dealerships have continued to classify service advisors as exempt.

But, consistent with its reputation, the Ninth Circuit took a different road and deferred to the Department’s 2011 regulations and agreed that service advisors are not exempt under the automobile dealership exemption for salesmen, partsmen, and mechanics.

Despite the Ninth Circuit’s ruling, automobile dealerships in this jurisdiction may still classify service advisors as exempt, but they must rely upon a different exemption – such as the FLSA’s exemption for commissioned retail sales employees.  There are, however, specific requirements that must be met to qualify for this exemption and dealerships would be wise to restructure service advisors’ compensation, job descriptions and duties to ensure compliance.

For further information regarding how to comply with the Fair Labor Standards Act, please contact any of the attorneys at BurnsBarton PLC.

About the Author
David T. Barton is a veteran employment lawyer who has dedicated his career to the protection of good employers. He takes a common sense and practical approach to the law, helping employers find ways to accomplish their goals while avoiding legal liability. Mr. Barton is also a noted speaker and trainer and uses his presentation skills to the advantage of his clients whether in training or in the courtroom.
Social Share
  • google-share

Leave a Reply Cancel reply

*
*

Contact BurnsBarton Attorneys

Please call or email any of our attorneys. We’ll talk with you about your needs and design a plan to accomplish your goals. Initial consultations are generally free and we offer flat-fee and alternative billing options for interested clients. Our rates are lower than the large firms we left, but it is our billing policies and practices that make us the most cost-efficient solution for employers in the Southwest.  
 
    Call 602-753-4500

About BurnsBarton PLC

BurnsBarton is a woman-owned business made up of big firm attorneys who have gone small to provide better client service at a lower cost. Our team has the horsepower necessary to handle big cases, while remaining committed to excellent client service. We focus on what we do best: advising and defending employers efficiently, effectively, and successfully. In short, we have “Big Law” experience, with better, more economical service.

Mission Statement

We protect good employers from all types of employment claims. We win cases, and we do so in the most cost-efficient manner possible. We work with the best people on the planet.  

certified-womens-business-enterprise-logo-small

Disclaimer

The information on this web site is not, nor is it intended to be, legal advice. You should contact an attorney for advice on your individual situation. Contacting BurnsBarton PLC does not create an attorney-client relationship.

 

Address: 2201 E. Camelback Road Suite 360 Phoenix, AZ 85016 Phone: 602-753-4500
© 2012 - 2023 BurnsBarton PLC