The United States Court of Appeals for the Ninth Circuit recently held that service advisors working at a car dealership did not fall within a Fair Labor Standards Act ("FLSA") exemption for "any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles."  See 29 U.S.C. 213(b)(10)(A).  In so doing, the court reversed a lower court dismissal of FLSA overtime claim and supplemental state-law claims by dealership service advisors and remanded the case for further action.

As a general matter, the service advisors in question were responsible for greeting customers, evaluating vehicle service and/or repair needs and recommending repairs as well as supplemental services.  Service advisors were also responsible for writing estimates for repairs, and placing follow-up calls to customers to recommend additional services beyond what is written in the estimate.

In holding that service advisors were not exempt from overtime compensation, the Ninth Circuit concluded it was proper to defer to applicable Department of Labor regulations, which limit the overtime exemption to salesmen who sell vehicles and partsmen and mechanics who service vehicles, where no definitions for salesmen, partsmen and mechanics exist within the Fair Labor Standards Act itself.  Navarro v. Encino Motor Cars