U.S. Supreme Court Rules Service Advisors Are Entitled To Overtime Featured

  10 April 2018

The U.S. Supreme Court has ruled that service advisers are salesmen and therefore exempt from overtime requirements, pursuant to federal law (the Fair Labor Standards Act).

Therefore, car dealerships are not required by federal law to pay overtime to the service advisors, service greeters or service repair employees. The Supreme Court’s decision could impact more than 18,000 dealerships nationwide and more than 100,000 service advisers.

The U.S. Court of Appeals for the 9th Circuit had previously 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 remanded the case to the 9th Circuit for review. After a second look, the appeals court once again ruled in favor of the service advisers, holding that they were entitled to overtime. The decision was appealed to the U.S. Supreme Court, where 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.” Read more here.