The Supreme Court has ruled that car dealerships' service advisers, like car salesmen and mechanics, are exempt under federal law from overtime pay requirements. The court ruled 5-4 Monday that service advisers, who greet customers and propose various repair services, are salespeople. The case affects the more than 18,000 dealerships nationwide. Together, they employ more than 100,000 service advisers.
, In this Oct. 10, 2017 photo, the Supreme Court in Washington is seen at sunset. The Supreme Court is being asked to take a case about whether eye drops are too big. Don’t roll your eyes. Major players in American’s medicine cabinets are now asking the high court to take the case. On the other side are patients using the companies’ drops to treat glaucoma and other conditions. They say wasted medication affects their wallets. They argue they should be able to sue. Drug companies, however, say the patients’ argument is based on speculation and a bottle that doesn’t exist. (AP Photo/J. Scott Applewhite)
02 of April 2018 16:09:50
WASHINGTON (AP) — The Supreme Court ruled Monday that car dealerships' service advisers, like car salesmen and mechanics, are exempt under federal law from overtime pay requirements.
The court ruled 5-4 that service advisers, who greet customers and propose various repair services, are salespeople. The case affects the more than 18,000 dealerships nationwide. Together, they employ more than 100,000 service advisers.
The case the high court made its decision in involves a Mercedes Benz dealership in Encino, California, and several current and former service advisers. Each side had a different interpretation of the Fair Labor Standards Act, which says that "any salesman ... primarily engaged in selling or servicing automobiles" doesn't have to be paid overtime.
The dealership argued that the definition of salesman clearly includes service advisers, who have a range of job responsibilities from helping to diagnose mechanical problems to preparing price estimates for repairs. Service advisers had argued that they weren't covered by the definition.
Justice Clarence Thomas wrote in a majority opinion that the "ordinary meaning of 'salesman' is someone who sells goods or services" and that service advisers "do precisely that."
In a dissent, Justice Ruth Bader Ginsburg wrote that because service advisers "neither sell nor repair automobiles" they should not be exempt from overtime payments.
The issue came to the high court after the Department of Labor changed its interpretation of the Fair Labor Standards Act in 2011. For the three decades up to then, the department operated under the view that service advisers didn't have to be paid overtime.
Monday's decision was the second time the court has ruled in the case. In an earlier round of litigation, the U.S. Court of Appeals for the 9th Circuit ruled that service advisers were entitled to overtime. But in 2016, following the death of Justice Antonin Scalia, an eight-member Supreme Court sidestepped the overtime question and told the appeals court to take another look at the case. After that, the appeals court once again ruled in favor of the service advisers.
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