Supreme Court rules: Service advisors exempt from overtime

Dealers can celebrate the recent U.S. Supreme Court ruling in Encinco Motorcars,LLC v. Navarro that service advisors are exempt from overtime pay.

To be exempt from overtime, the “salesmen, partsmen, and mechanics” exemption requires only that covered employees spend over half their time working as “salesmen, partsmen or mechanics,” regardless of how or how much they are paid (as long as they are paid minimum wage for every hour worked). A copy of the decision can be found here.

NADA provided extensive support to the dealers litigating the case and worked with the state dealer associations in the Ninth Circuit to file critical “friend of the court” briefs on behalf of all dealers.

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