The United States Supreme Court has agreed to hear arguments on whether car dealership “service advisors” – the employees who greet customers when they take their vehicles in for repairs or maintenance – are entitled to overtime pay under the federal Fair Labor Standards Act.
According to Automotive News, inconsistent guidance from the Department of Labor and a split among the federal circuit courts may have prompted the Supreme Court to take the case. In March 2015, the Ninth Circuit Court of Appeals found that service advisors should be entitled to overtime pay, basing its decision on the most recent Department of Labor regulation on the subject. Other courts have held differently, ruling that service advisors are exempt from overtime because they are technically salespeople who are paid a commission based on the number of cars serviced.
The Supreme Court’s decision is expected to resolve the issue nationwide and apply to all dealers across the country.
The attorneys in Sommers Schwartz’s Employment Litigation Group handle various types of employment disputes and are especially knowledgeable about minimum wage, overtime, and equal pay issues. If you have questions regarding your rights to compensation, please contact us today.