Car Dealership Service Advisors Ruled Exempt From Federal Overtime Pay Requirements
Service Advisors May Not Be Exempt Under State Law
The U.S. Supreme Court has ruled that service advisors—employees at car dealerships who consult with customers about their servicing needs and sell them servicing solutions—are exempt from the federal Fair Labor Standards Act (FLSA) overtime pay requirements. Previously, the U.S. Department of Labor and a federal appellate court held that a service advisor did not fall within the FLSA’s overtime pay exemption category as a “salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles.” However, employers of service advisors are reminded that these employees may still be eligible for overtime pay under state law.
Click here to read the U.S. Supreme Court’s opinion.