The U.S. Supreme Court has just agreed to review the circumstances under which the car exemption may apply. Pursuant to the Fair Labor Standards Act, “non-exempt” employees are generally entitled to earn overtime pay at a rate of one and one-half times their standard rate of pay for time worked in excess of 40 hours in any workweek. However, if you are categorized as “exempt” then you may not earn overtime pay regardless of how many hours you work. Standard exemptions include the administrative, executive and professional. Additionally, the FLSA has created an exemption for employees “primarily engaged” in selling or servicing automobiles and as such are not entitled to overtime pay.
The recent FLSA wage and hour case involves the question of whether this exemption applies to service advisors or whether these workers could pursue overtime pay. The language contained in the statute provides that the exemption applies to ““any salesman, partsman or mechanic primarily engaged in selling or servicing automobiles.” This definition is somewhat ambiguous, with the Labor Departments stating that service advisers are nonexempt employees because they don’t personally service automobiles. On the other hand, several courts have held that they are exempt.
The Supreme Court has agreed to hear this case in order to resolve this split in authority over the FLSA’s exemption meaning.
If you have any questions about the car sales exemption, or any other wage and other concern, please do not hesitate to contact the experienced Atlanta FLSA lawyers at Buckley Beal LLP for an immediate consultation.