Automobile Service Advisers Entitled to Overtime Pay, Court Rules

Los Angeles, CAA major victory has been awarded to “service advisers” who work at car dealerships and give repair estimates, with a federal appeals court finding that they are entitled to overtime pay under federal labor law.

This week, the US Court of Appeals for the Ninth Circuit found that this class of employee does not fit into the categories listed in the Fair Labor Standards Act overtime exemption, which covers “any salesman, parts man, or mechanic primarily engaged in selling or servicing automobiles.” These categories do not apply the ninth circuit ruled.

Instead, Circuit Judge Susan Graber found that “because plaintiffs do not fit within any of those definitions, they are not exempt from the FLSA’s overtime wage provisions." She added, "Service advisors do none of those things; they sell services for cars. They do not sell cars; they do not stock parts; and they do not perform mechanical work on cars.”

Effectively, the ruling means that people employed as service advisers at dealerships within the Ninth Circuit are now entitled to overtime pay, according to attorneys for the plaintiffs.

The US Ninth Circuit covers: the District of Alaska, Arizona, Central District of California, Eastern District of California, Northern District of California, Southern District of California, District of Hawaii, District of Idaho, District of Montana, District of Nevada, District of Oregon, Eastern District of Washington, Western District of Washington.