Daily Labor Report®

No Deference for DOL Overtime Rule on Car Workers, Justices Rule

June 23, 2016, 4:00 AM

Service advisers at car dealerships may be ineligible for overtime pay because they might fall within a Fair Labor Standards Act exemption, the U.S. Supreme Court ruled 6-2, rejecting a Labor Department rule (Encino Motorcars, LLC v. Navarro, 2016 BL 196078, U.S., 15-415, 6/20/16).

The court June 20 reversed a U.S. Court of Appeals for the Ninth Circuit decision that service advisers for Encino Motorcars LLC fall outside an FLSA exemption covering car salesmen, mechanics and partsmen.

The Ninth Circuit had deferred to a 2011 DOL rule interpreting the exemption not to include the service advisers because they...

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